shastina mobile estatesshastina mobile estates weed

Exclusive Offering of California Commercial Advisors

Kevin Burger - 949.375.1301 - [email protected] - 01441685

Shastina Mobile EstatesShastina Mobile Estates

Weed, CaliforniaWeed, California

Shastina Mobile Estates pg. 2

Investment Overview

Property

Location

Financial Detail

Comparable Properties

Investment Rationale

Contents


Summary

Value Add Opportunities

Investment Overview


California Commercial Advisors is pleased to present the Shastina Mobile Estates manufactured home and RV

park located in Weed, California. This 33 space park offered exceptional value add opportunities through the

lease up of four park owned homes and available vacant lots. The park provides a solid initial return with great

upside. There is an additional opportunity to increase the number of available spaces through the reclamation of

about an acre of land currently holding a pond.

Investment Overview—Summary


Rental or sale of 4 vacant homes

Fill vacant lots:

4 Manufactured Home

5 RV

Expense Recapture for Water/Trash &

Septic Expense

Implement annual rental increases

Enhanced Marketing and Management

Investment Overview—Value Add Opportunities

Shastina Mobile Estates pg. 6 Property


Property Details

Property Description

Infrastructure and Utilities

Site Mix and Occupancy

Parcel Information

Property Overlay

Property


Site Address: 4408 Hwy 97

City, State: Weed, CA

HCD Designation: 19 MH & 14 RV lots

Park owned Rental Units: 12 Park Owned

Manufactured Homes

Community Type: All Age

Acreage: 10.36

Parcel Number: 020-190-460-000

Property—Details


The Shastina Mobile Estates consists of 10.36 acres of land encompassing the park. The improvements include an HCD permitted 33 space Mobile

Home & RV Park, along with 11 park owned coaches with one additional home in process of title transfer.

The park is licensed for 19 MH and 14 RV lots with potential for an additional lot with a clarification by Housing and Community Development.

17 of the MH lots are located closest to Highway 97. These are very large and spacious lots with 13 of the 17 accommodating double-wide coach-

es. The remaining MH lots are located at the top of the hill along with two RV lots with the other large RV lots lining the eastern portion of the

park providing quite seclusion and fantastic views of Mt. Shasta.

This park has a pond at the southern end, which could be filled in and provide an additional acre of usable flat land for storage or rentable lots.

And, there are two 40’ truck trailers and a 100+ sf shop being used by management for storage.

The park is served by well and septic services. Tenants are direct billed for electric and landlord currently provides water, septic maintenance and

trash.

Property—Description


Service Type Provider Payor Metered/Direct Billed

Electric: Pacific Power Tenant Direct Billed

Water: Well Landlord Master metered

Gas: Tenant Tenant Propane

Trash: Contracted Svc. Landlord

Septic: Self Maintained Landlord

On-Site Manager: No

Off-Site Maintenance: Yes

Off-Site 3rd Party Management: Yes

Role Compensation

On-Site Maintenance $1,500 month + use of park

owned home

Off-Site Manager 7% of Gross

Utilities Park Management

Property—Utilities & Management

Property—Site Mix & Rental Compilation


Total Occupied Monthly Rents

Total Lots:: 33

Mobile Home Lots:: 19 15 $475-$490

RV Lots: 14 9 $350

Resident Owned Home or RV /Lot Rent Only: 12 12 $350-$490

Park Owned Mobile Homes: 12 8 $500-$1,400

Property—Engineered Plan


This 10.36 acre parcel slopes gradually up from Highway

97 with spectacular views of Mt. Shasta.

Mature trees are throughout the property shading the

lots.

Home sites are spacious and provide full utility hookup

for electric, septic connections and water service.

The road loops through the property and is comprised

of primarily of asphalt and gravel.

APN:040-150-170-000

Approximately 10.36 Acres


Summary

Maps

Demographics

Amenities/Services

Location


This park is at the cross road to Lake Shastina, a desirable destination for residents and visitors to the area. A short three miles from the park lies golfing, fishing and many other outdoor activities. The

park is also 3 miles outside of Weed on Hwy 97 which is a major north-south U.S. highway continuing northeast towards Klamath Falls, Oregon.

From its founding in 1901, to as late as the 1980s, Weed was home to a thriving lumber industry. Roseburg Forest Products, International Paper Company, Morgan Products Ltd. and J.H. Baxter were

all based in Weed. Today, most of the wood-product related industry has been scaled back or ceased altogether, and Weed's economy has become more reliant on tourism as a source of economic

activity. Retail at the south end of town, in the form of restaurants and hotels, caters primarily to tourist travel on the Interstate 5 corridor. Light manufacturing of bottled water from Crystal Geyser

Water Company has also added economic stability to the area.

Weed is part of the Shasta Valley Enterprise Zone which provides tax breaks, fee reductions, and permit fast-tracking for employers locating in the area.

Visitors use Weed as a base to engage in trout fishing in the nearby Klamath, Sacramento and McCloud Rivers, or come to see and climb Mount Shasta, Castle Crags or the Trinity

Alps. Visitors also engage in nearby skiing (both alpine and cross-country) and biking, or hike to the waterfalls, streams and lakes in the area, including nearby Mossbrae Falls, Lake

Siskiyou, Castle Lake and Shasta Lake.

Location—Summary


Location—Maps

Shastina Mobile Estates


Sha

stin

Amenities/Services

The 2010 United States Census reported that Weed had a population of 2,967. The population density was 618.9 people per square mile. The racial makeup of Weed was 2,221 (74.9 percent) white, 206 (6.9 percent) African-American, 70 (2.4 percent) Native American, 121 (4.1 percent) Asian, 27 (0.9 percent) Pacific Is-lander, 132 (4.4 percent) from other races, and 190 (6.4 percent) from two or more races. Hispanic or Latino of any race were 475 persons (16.0 percent).

The census reported that 2,820 people (95.0 percent of the population) lived in households, 101 (3.4 percent) lived in non-institutionalized group quarters, and 46 (1.6%) were institutionalized.

There were 1,131 households, out of which 385 (34 percent) had children under the age of 18 living in them, 447 (39.5 percent) were opposite-sex married cou-ples living together, 188 (16.6 percent) had a female householder with no husband present, 81 (7.2 percent) had a male householder with no wife present. There were 103 (9.1 percent) unmarried opposite-sex partnerships, and 2 (0.2 percent) same-sex married couples or partnerships. Three hundred-eleven households (27.5 percent) were made up of individuals, and 125 (11.1 percent) had someone living alone who was 65 years of age or older. The average household size was 2.49. There were 716 families (63.3 percent of all households); the average family size was 3.02.

The population was spread out, with 735 people (24.8 percent) under the age of 18, 460 people (15.5 percent) aged 18 to 24, 660 people (22.2 percent) aged 25 to 44, 698 people (23.5 percent) aged 45 to 64, and 414 people (14 percent) who were 65 years of age or older. The median age was 32.7 years. For every 100 females, there were 100.7 males. For every 100 females age 18 and over, there were 100 males.

There were 1,273 housing units at an average density of 265.5 per square mile (102.5/km2), of which 543 (48 percent) were owner-occupied, and 588 (52 per-cent) were occupied by renters. The homeowner vacancy rate was 3.3%; the rental vacancy rate was 8.8 percent. Forty-three percent of the population (1,275 persons) lived in owner-occupied housing units and 1,545 people (52.1 percent) lived in rental housing units.

The Lake Shastina Golf Resort offers an 18-hole golf course, and a 9-hole

Scottish links course in a scenic setting.

Weed Parks and Rec District include Charles Byrd Community Park, and Bel

Air Park, adjacent to College of the Siskiyou and home of the community

swimming pool.

Weed is on the Volcanic Legacy Scenic Byway, and a short distance from

the Pacific Crest Trail.

Mount Shasta Ski Park offers alpine and Nordic skiing in winter, as well as

summertime mountain biking, rock climbing, and a concert series.

The Deer Mountain Snowmobile Park, is 18 miles northeast of Weed on US

Highway 97 and offers 250 miles of groomed trails.

Location—Demographics & Amenities/Services


Rent Roll

Financial Analysis

Financing Assumptions

and Cash Flow Analysis

Financial Detail


Financial Detail—Rent Roll

Shastina Mobile Estates Rent Roll-August 2020

Space Lot Type Market

Rent Current Lot

Rent Current POH

Rent Tenants

1 RV $350 $350 Tenant

1a MH $350 VACANT

1b MH $1,400 $475 $925 Tenant

1c RV $350 $350 Tenant

2 MH $845 $475 $425 Tenant

3 MH $925 $475 $450 Tenant

4 MH $925 $475 $450 Tenant

5 MH $800 $475 $325 Tenant

6 MH $475 $475 Tenant

7 MH $475 VACANT

8 MH $475 VACANT

9 MH $950 $475 $375 Tenant

10 MH $800 $475 $325 Tenant

11 MH $490 $490 Tenant

12 MH $475 VACANT

13 MH $490 $490 Tenant

14 MH $475 VACANT

15 MH $850 $475 $375 Tenant

16 MH $475 VACANT

17 MH $650 $475 $175 Tenant

18 MH $475 VACANT

20 MH $475 VACANT

21 RV $350 VACANT

22 RV $350 VACANT

23 RV $350 $350 Tenant

24 RV $350 $350 Tenant

25 RV $350 VACANT

26 RV $350 $350 Tenant

27 RV $350 VACANT

28 RV $350 $350 Tenant

29 RV $350 VACANT

30 RV $350 $350 Tenant

31 RV $350 $350 Tenant

32 RV $350 $350 Tenant

Monthly $ 18,000 $ 8,880 $ 3,825

Annual $ 216,000 $ 106,560 $ 45,900

Space Lot Type Market Rent Current Lot

Rent Current POH

Rent Tenants

Shastina Mobile Estates pg. 20 Financial Detail—Analysis

Shastina Mobile Estates 4408 Hwy 97, Weed, CA 33 Lots Siskiyou County

Value of 33 Lots $716,022 Value of Park Rentals $228,978

Price per Lot @ Lot Value only $21,698 List Price $945,000

Seller Current Buyer Buyer

Base Rents:

2019

Actual

YR 1

ProForma

YR 2

ProForma

Lot Rents Vacant RV Lot Vacant RV Vacant MH Lot Vacant POH $106,560 $111,888 $117,482

Vacant Lots at Market Rents 5 0 4 4 $66,600 $69,930 $73,427

Gross Poential Rental Income-LOT RENT ONLY $173,160 $181,818 $190,909

Reimbursements

Water/Septic/Trash 75% recovery $0 $10,725 $12,563

Total Expense Reimbursement $0 $12,317 $12,563

GROSS POTENTIAL INCOME (GPI): Vacancy Rate $173,160 $194,135 $203,472

Vacancy 24.2% -$66,600 -$69,930 -$73,427

EFFECTIVE GROSS INCOME (EGI): $106,560 $124,205 $130,045

EXPENSES: Park Owned

Home Expenses 2019 Actual

Expenses EXP % Year 1 Projected

Expenses Year 2 Projected

Expenses

Real Estate Tax reset to sale price $10,395 19% $10,395 $10,603

Park Owned Home Taxes $850 Insurance Liability & Prop $700 $2,800 5% $2,856 $2,913

Management Fee $6,394 12% $6,521 $6,652

Onsite Maintenance/mgmt $16,800 $12,000 22% $12,240 $12,485

Common Electric/Well $4,200 8% $4,284 $4,370

Trash Removal $6,900 13% $7,038 $7,179

Septic Maintenance $3,200 6% $3,264 $3,329

Water Testing $1,800 3% $1,836 $1,873

Park Reairs $2,000 4% $2,040 $2,081

Park Owned Rental Repairs $5,500 $0 0% $0 $0

Accounting & Postage $500 1% $510 $520

Legal & LLC tax $2,500 5% $2,550 $2,601

Supplies $450 1% $459 $468

Permits & License $750 1% $765 $780

TOTAL EXPENSES: $23,850 $53,889 $54,758 $55,854

Lot Expense % 50.6% 44.1% 42.9%

NOI: $52,671 $69,446 $74,192

Park Owned Rental/Other Income

OTHER INCOME:

POH Rents/Storage/Other $45,900 $48,195 $50,605

Park Owned Home Expenses Seller 52% Buyer 50% $23,850 $24,098 $25,302

TOTAL OTHER INCOME: $22,050 $24,098 $25,302

CASH FLOW BEFORE DEBT: $74,721 $93,544 $99,494


Financial Detail—Financing Assumptions & Cash Flow Analysis

Broker Notes & Assumptions:

*Year 1 Gross Income includes raising all rents by 5%

*Year 2 Gross Income includes raising existing Lot & POH rents 5%

*Year 1, and beyond, includes billing back water, sewer and trash related costs and collecting 75% of total

Cost per tenant is $53 per month

PARK OWNED HOME VALUE:

1B 1985 Fleetwood DW $37,200

2 1972 Winchester DW $21,600

4 1972 Skyline DW $25,920

5 1989 Fleetwood DW $47,040

8 1976 Skyline DW $26,400

10 1977 Far West DW $13,800

14 1973 Fleetwood DW $12,768

15 1976 Fleetwood SW $15,840

16 1972 Fleetwood SW $12,960

17 1961 Elcar SW $7,200

18 1961 Great Lakes SW $8,250

Value of non-lot rentals $228,978

Potential Lender Terms

Interest Rate Amortization in Years Down Payment

5% 25 35%

Amount Fiananced $614,250 $330,750

DEBT SERVICE $43,092 $43,092 $43,092

CASH FLOW AFTER DEBT $31,629 $50,452 $88,538

Principal Reduction $10,510 $10,510 $10,956

TOTAL PRE-TAX CASH FLOW $42,139 $60,962 $99,494

CAP RATE CFBD/PP for Lot & POH 7.91% 9.90% 10.53%

CASH ON CASH RETURN CFAD/DP 9.56% 15.25% 26.77%

EXPENSE RATIO EXP/EGI 50.57% 44.09% 42.95%

TOTAL RETURN CFAD+PRINC REDUC/DP 12.74% 18.43% 30.08%

PRINCIPAL REDUCTION $10,510 $10,510 $10,956

DEBT COVERAGE RATIO NOI/DS 122.2% 161.2% 172.2%

Seller Current Buyer Buyer

2019

Actual

YR 1

ProForma

YR 2

ProForma


Hornbrook TP

21 MH Lots, plus Park Owned Rentals

$535,000 FOR SALE

Weaver Creek Trailer Park

22 MH Lots, Weaverville CA

Closed 5/1/2020 for $500,000

Burney Falls Trailer Resort

10 MH & 18 RV lots, Burney CA

Closed 11/21/2018 for $439,000

Comparable—Sales

Shastina Mobile Estates-Weed

33 MH Lots, plus Park Owned Rentals

$945,000 FOR SALE

Riverwood MHP

52 MH Lots, Dunsmuir CA

Closed 5/9/2018 for $1,685,000

Bixby Knolls MHP

51 MH Lots, Anderson CA

Closed 3/30/2018 for $1,485,000 Oakwood MHP

58 MH lots, Redding CA

Closed 7/6/2020 $1,985,000


Property Address Rent Space Utilities Included


4408 Hwy 97

Weed, CA

$475 MH Trash, Water, Septic

A: Cal Ore Mobile Estates

1490 Kellogg

Weed, CA

$450 +

$28 Septic

MH Trash, Water

B: Abrams Lake Mobile Estates

2601 N Old Stage

Mt. Shasta, CA


C: Shadow Mt. MHP

1309 Old Stage

Mt. Shasta, CA


D: Cave Springs

Mobile Park

4727 Dunsmuir

Dunsmuir, CA


E: Rustic Trailer Park

30877 Crag View

Dunsmuir, CA


D

C

A

B

Comparable—Rents

E


Investment Rationale

Shastina Mobile Estates offers a great opportunity to purchase a stable income producing park, with significant upside, in a fantastic and scenic

location.

There is currently no advertising for vacant lots. This is an opportunity to use marketing and management skills to immediately fill vacant man-

ufactured home and RV spaces. There is existing onsite maintenance personnel to take care of the park common areas as well as rehab and

repair park owned coaches.

There is also a local real estate agent acting as manager and leasing agent whose support could be utilized more extensively in securing addi-

tional tenants for the park. Current owners have been very selective in their tenancy which has lead to very good collections but higher vacan-

cies.

The park currently pays to provide water, trash pickup and septic maintenance. These expenses should be passed to the tenants as they are

the users of these services. Most tenants understand this and often it is easier to pass on utilities than to institute a rent increase. The costs

for these services to each tenant would be less than $55 per month. My analysis has rents going up 5%.

At the asking price of $945,000, this park has a Cap Rate of 7.9% with value add opportunities. Price per lot, not including the value of the park

owned coaches, of less than $22,000 represents a great value for this park.

Call me for more detail or to arrange a tour of the property.


Offered by:

Kevin Burger

California Commercial Advisors

949-375-1301

[email protected]

DRE:01441685

Please feel free to call or email me with questions regarding the


shastina mobile estatesshastina mobile estates weed

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