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Mobile Home Park

Crescent Valley Mobile Home Park

23500 The Old Rd, Newhall, CA 91321

Listing Price: $16,000,000

Cap Rate
4.04%
Number of Spaces
84
Lot Size
14.13 acres
Occupancy
95.0%
Price/Space
$190,476
Spaces/Acre
5.94
Year Built
1969

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire Crescent Valley Mobile Home Park, an all-age 84-space community located at 23500 The Old Road in Newhall, CA. The community consists of all tenant-owned homes. It is on city water services and a state-of-the-art sewage treatment plant which was recently installed for roughly $3mm. Amenities include a clubhouse and swimming pool. The property is subject to LA County rent control, however, most of the tenants are on long-term leases with stipulated rent increases to circumvent the local stringent rent control ordinance. There is significant value-add opportunity and rental upside in this deal to gradually increase the quality of the housing stock, replacing the older single wide units with newer doublewides, which are currently renting for $1,650 per month. Additionally, while there are currently 84 spaces, the park was originally built for 87 spaces. Two spaces were destroyed in mudslides, and there is room to add two spaces back and ultimately bring occupancy to 86 spaces. The current owner has made significant improvements in preparation of the sale, such as recently repaving all the roads. Based on the financial summary, an investor could expect to purchase the property at a 4.04% year 1 cap rate. This offering will appeal to an investor looking for a mobile home park with recession-resistant cash-flow and value-add opportunity. Southern California has consistently ranked as one of the nation’s hottest housing markets and continues to demonstrate year-over-year growth.

Investment Highlights

  • HIGH QUALITY ALL-AGE COMMUNITY IN SOUTHERN CALIFORNIA - Majority double wides. All tenant-owned homes. Amenities include swimming pool & clubhouse. City water & newly installed sewage treatment plant.
  • STRONG DAY-1CASH FLOW + VALUE-ADD OPPORTUNITY - 4.04% year 1 cap rate. Significant rental upside. Opportunity to gradually increase quality of housing stock by replacing older single-wides.
  • MARKET GROWTH - Average home value in Newhall is $617,863. Newhall has seen a 13.5% increase in housing prices over the last year.

Exclusively Listed By

Mobile Home Park

Crescent Valley Mobile Home Park

Listing Price: $16,000,000

Cap Rate
4.04%
Number of Spaces
84
Lot Size
14.13 acres
Occupancy
95.0%
Price/Space
$190,476
Spaces/Acre
5.94
Year Built
1969

Investment Highlights

  • HIGH QUALITY ALL-AGE COMMUNITY IN SOUTHERN CALIFORNIA - Majority double wides. All tenant-owned homes. Amenities include swimming pool & clubhouse. City water & newly installed sewage treatment plant.
  • STRONG DAY-1CASH FLOW + VALUE-ADD OPPORTUNITY - 4.04% year 1 cap rate. Significant rental upside. Opportunity to gradually increase quality of housing stock by replacing older single-wides.
  • MARKET GROWTH - Average home value in Newhall is $617,863. Newhall has seen a 13.5% increase in housing prices over the last year.

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire Crescent Valley Mobile Home Park, an all-age 84-space community located at 23500 The Old Road in Newhall, CA. The community consists of all tenant-owned homes. It is on city water services and a state-of-the-art sewage treatment plant which was recently installed for roughly $3mm. Amenities include a clubhouse and swimming pool. The property is subject to LA County rent control, however, most of the tenants are on long-term leases with stipulated rent increases to circumvent the local stringent rent control ordinance. There is significant value-add opportunity and rental upside in this deal to gradually increase the quality of the housing stock, replacing the older single wide units with newer doublewides, which are currently renting for $1,650 per month. Additionally, while there are currently 84 spaces, the park was originally built for 87 spaces. Two spaces were destroyed in mudslides, and there is room to add two spaces back and ultimately bring occupancy to 86 spaces. The current owner has made significant improvements in preparation of the sale, such as recently repaving all the roads. Based on the financial summary, an investor could expect to purchase the property at a 4.04% year 1 cap rate. This offering will appeal to an investor looking for a mobile home park with recession-resistant cash-flow and value-add opportunity. Southern California has consistently ranked as one of the nation’s hottest housing markets and continues to demonstrate year-over-year growth.

Exclusively Listed By

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