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Mobile Home Park

Leisure Lake Estates

180 S Main St, Red Bluff, CA 96080

Listing Price: $2,400,000

Cap Rate
5.25%
Number of Spaces
62
Lot Size
8.87 acres
Occupancy
89.3%
Price/Space
$38,710
Spaces/Acre
7.00

Investment Overview

Leisure Lake Estates, is a 62 space manufactured housing older persons' community, owned for several decades by the same family now looking to sell their leasehold interest to retire. Leisure Lake is located in Red Bluff, California, a town known as "The Victorian City on the River". As the Tehama County seat, its 14,500 residents enjoy a Mediterranean climate at the north end of the Sacramento Valley about 130 miles north of the state capitol, Sacramento, and 30 miles south of Redding. Cattle, almonds, olives, prunes, and walnuts abound in Tehama county.
The underlying land lease terminates January 30, 2053 and is held primarily by descendants of the original landowners. Built in 2 sections, park maps are dated 1970 and 1973. The main park entry is on Brearcliffe. The second on Main Street is gated except for emergencies or work, per approval of the fire and police departments.
The park is bordered on two sides by Army Corps of Engineers land along the Sacramento River which the park voluntarily maintains. The park is therefore in a flood zone, but there reportedly has never been damage inside the park homes from flooding. Streets are paved and there are streetlights. Part of the grounds are fenced. Three spaces are vacant (59, 61, and 62); space 1 is used for park storage and space 8 hosts resident gatherings.
On one side of space 8 there is a ground level office. Nearby, the laundry room with park-owned coin operated machines connects to an equipment storage room. There are two small sheds. The RV storage area has drive through access. Four RV spaces are occupied at $30.00 per month.
Of the thirteen park owned homes, eleven are rented. Two are in park use as noted. Over the last few years the park has upgraded homes converting them to rentals and that expense is reflected among recent non routine park operating costs. In that process, for example, several units have recently installed HVAC units, swamp coolers, various appliances, flooring, water heaters, counters, toilets and/or a new roof, etc. Currently 8 are month to month rentals. Spaces 39, 41, and 45 have remaining months in their initial leases. Due to COVID, home rents were not increased in 2020, and range from $470 to $800, plus sewer and trash.
Overall, there are fifty-three doublewide sites and nine singlewide sites. Lots are rented on a monthly basis from $342 to $420 plus sewer $24 and trash $12.75, and personal gas and electricity usage fees. Spaces 1 and 8 are listed at a nominal $400 per month on the rent roll because they are scheduled sites, but no rent is collected for them or vacant sites 59, 61, and 62. If rented the home at 8 would rent for about $650 to $700 if not in park use. Owners have considered upgrading space 1 and moving the park events to space from 8 but focused on other homes to date. Two homes are currently for sale around $80,000. (See OM for full description)

Investment Highlights

  • No Rent Control
  • Upside in Rents
  • Municipal Water & Sewer
  • 51 Double Wides
  • 55+ Community

Exclusively Listed By

Mobile Home Park

Leisure Lake Estates

Listing Price: $2,400,000

Cap Rate
5.25%
Number of Spaces
62
Lot Size
8.87 acres
Occupancy
89.3%
Price/Space
$38,710
Spaces/Acre
7.00

Investment Highlights

  • No Rent Control
  • Upside in Rents
  • Municipal Water & Sewer
  • 51 Double Wides
  • 55+ Community

Investment Overview

Leisure Lake Estates, is a 62 space manufactured housing older persons' community, owned for several decades by the same family now looking to sell their leasehold interest to retire. Leisure Lake is located in Red Bluff, California, a town known as "The Victorian City on the River". As the Tehama County seat, its 14,500 residents enjoy a Mediterranean climate at the north end of the Sacramento Valley about 130 miles north of the state capitol, Sacramento, and 30 miles south of Redding. Cattle, almonds, olives, prunes, and walnuts abound in Tehama county.
The underlying land lease terminates January 30, 2053 and is held primarily by descendants of the original landowners. Built in 2 sections, park maps are dated 1970 and 1973. The main park entry is on Brearcliffe. The second on Main Street is gated except for emergencies or work, per approval of the fire and police departments.
The park is bordered on two sides by Army Corps of Engineers land along the Sacramento River which the park voluntarily maintains. The park is therefore in a flood zone, but there reportedly has never been damage inside the park homes from flooding. Streets are paved and there are streetlights. Part of the grounds are fenced. Three spaces are vacant (59, 61, and 62); space 1 is used for park storage and space 8 hosts resident gatherings.
On one side of space 8 there is a ground level office. Nearby, the laundry room with park-owned coin operated machines connects to an equipment storage room. There are two small sheds. The RV storage area has drive through access. Four RV spaces are occupied at $30.00 per month.
Of the thirteen park owned homes, eleven are rented. Two are in park use as noted. Over the last few years the park has upgraded homes converting them to rentals and that expense is reflected among recent non routine park operating costs. In that process, for example, several units have recently installed HVAC units, swamp coolers, various appliances, flooring, water heaters, counters, toilets and/or a new roof, etc. Currently 8 are month to month rentals. Spaces 39, 41, and 45 have remaining months in their initial leases. Due to COVID, home rents were not increased in 2020, and range from $470 to $800, plus sewer and trash.
Overall, there are fifty-three doublewide sites and nine singlewide sites. Lots are rented on a monthly basis from $342 to $420 plus sewer $24 and trash $12.75, and personal gas and electricity usage fees. Spaces 1 and 8 are listed at a nominal $400 per month on the rent roll because they are scheduled sites, but no rent is collected for them or vacant sites 59, 61, and 62. If rented the home at 8 would rent for about $650 to $700 if not in park use. Owners have considered upgrading space 1 and moving the park events to space from 8 but focused on other homes to date. Two homes are currently for sale around $80,000. (See OM for full description)

Exclusively Listed By

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