Property details

55+ Active Adult Gated Community For Sale, Southwest Region

Property Description

55+ Active Adult Gated Community For Sale

Lake Park Resort & Country Club.

Confidential and Off-Market.

1,134 Total Lots (see below image)

This property is located in a Southwestern State (New Mexico, Oklahoma, Texas). The State shown is representative only. The actual location will be provided to qualified buyers.

Awarded 2015 Park of the Year by the it's state Recreational Vehicle Association.

This is a 55+ active adult gated community located.

The park, excluding the golf course lands, encompasses approximately 400 acres

Surrounded by citrus groves and palm trees in a beautiful, tropical setting.

Of this approximately 200 acres is developed and another 200 acres, currently a leased orchard, is available for future expansions.

The park offers many living options including RV sites, mobile homes, park models, cottages and apartments and is primarily a seasonal park, with peak season running from October to March.

In terms of amenities,this offering is unparalleled in the scope and quality of the facilities offered to tenants and it is only getting better with a soon to be completed $3.5 Million Resort nearby.

Event Center. The Center will provide tenants with a state of the art facility for meetings, fitness, arts and crafts and socializing, and will encompass a 500 seating capacity auditorium.

A brief overview of amenities and features includes:
-� Gated community with 24-hour gate hosts
-� Championship 18-hole golf course with licensed restaurant in historic Club House
-� 3 heated swimming pools, 2 with hot tubs
-� 4 lighted tennis courts
-� 4 lighted pickleball courts
-� 18 shuffleboard courts
-� Wood shop, art studio, sewing room, pool hall, card and craft room and fitness center -� all to be updated with new event center
-� Extensive landscaping in a tropical setting
-� 20 fully furnished rental apartments
-� Brand new $750K Waterline to service park

The park has undergone significant capital improvements over the last two years, including the aforementioned Event Center.

Other major capital improvements completed recently include extensive paving of the park, a new city Waterline, upgraded cable tv and internet infrastructure, renovations to the existing clubhouse, construction of 3 new all wood gazebos and significant landscaping.

Lot numbers, types and occupancy levels, peak season and off season, are presented below -� please note that this is an ever evolving count due to ongoing lot developments as well as some lot conversions from RV to MH, but should be materially correct as of this posting.

FINANCIAL OVERVIEW

2011 to 2014 P&L Overview / Highlights:

-� Total Revenues, excluding Lot Sales and Golf Course Revenues, were $3,068,769 in 2014 and have averaged $2,978,208 for the prior four years (2011 to 2014).

-� Net Lot Sales (after Cost of Sales) were $390,337 in 2014 and have averaged $367,207 for the prior four years.

-� Unadjusted Net Operating Income for 2014, excluding lot sales, was $323,000 and for the four years 2011 to 2014 averaged $464,000.

-� After adjusting for one time events and normalizing certain expenditures, Adjusted Net Operating Income, excluding lot sales, was $570,018 for 2014 and averaged $493,190 for the four years 2011 to 2014.

-� Adding in both Net Lot Sales ($390,337 for 2014 and average of $367,207 for 2011-2014) and Orchard Sales ($34,478 for 2014 and average of $88,255 for 2011-2014) brings Adjusted Net Operating Income to $994,833 for 2014 and average of $948,652 for 2011-2014.

Finally, it should be noted that this resort is a non-core property in the owner's portfolio given its geographical isolation from their other properties and their focus on mid-size parks without RV capacity.

In this respect, the owners have not had a strong bottom line focus on the operations and in many ways run the park as a sort of hobby.

It is the owner's opinion that, in the hands of a dedicated and experienced operator, this resort could improve its operating efficiencies and bottom line performance by a wide margin, with potential NOI reaching $1.2M per annum.

Some of the key areas where the owner recognizes a shortfall in their management of the property include:

1. RV Revenues -� RV Revenues at the park have been falling each year, going from $1,039,000 in 2011 to $636,000 in 2014. The owner believes that a more experienced RV operator could, with an effective marketing campaign, increase RV Space Revenues by approximately $250,000 per year, adding approximately $150,000 to the bottom line.

2. Labor Efficiency -� Adjusted payroll for 2014 of $767,428 represents approximately 25% of Non-Lot Sales Revenues versus an industry average of 15%. Even with a seasonal park, this metric should be closer to 19%, which would generate savings of approximately $180,000 per annum.

3. Repair & Maintenance Costs -� currently adjusted R&M is running at about 12.5% of Non-Lot Sales Revenues. Again, it is the owner's opinion that a more focused and engaged operator could reduce these fees closer to the industry average of 9%. Even assuming a reduction to only 10% of revenues would provide for an additional annual savings of over $60,000.

4. Rent Increases -� The owner is currently planning to add a rent increase of $30 to MH Annual Lots that should drive an additional $130,000 per annum in sales, all to the bottom line.

5. Lot Sales -� There are approximately 94 lots still available for sale at Llano Grande Lake Resort. With lots going for approximately $35,000 per, this could drive additional revenues over the next 6 years of $3.3M and add $2.475M of NOI (based on a historical COS factor of 25%). Over 6 years, this could add over $400,000 to the NOI of the property each year.

6. Finally, with the completion of the new $3.5M Event Center, there will be significant opportunities to drive additional revenues through various events, hostings, concerts and so forth. While there will be costs associated with these events, it is estimated that each dollar of additional event center revenues will drive 25 cents to the bottom line -� this could presumably add another $25,000 to $50,000 to NOI. In summary, with an adjusted 2014 NOI of $570,000 and adding the above opportunities, this resort could drive an annual NOI, before Lot Sales and Orchard sales, of approximately $1.1M to $1.2M. Add to this the upside from Lot Sales (estimated NOI impact per year of $400,000), Orchard Sales ($35K to $100K per annum) and Event Center revenues, and an optimal annual NOI of $1.5M or more becomes very realistic. 7. Seller is selling as a Net Sales Price. Buyer responsible for all commissions.








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Highlights

Status:
Sold
Price:
$18,500,000
Cap Rate:
5.13%
Annual Rent:
$948,652
 

Property Information

Property Type:
Mobile Home Parks
Industry Type:
Mobile Home Park
Units/Spaces:
1134
Purchase Tenure:
Fee Simple
 

Existing financing information

N/A

The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.