From the 2004 Tustin Village Mobile Home Park original Sales Brochure:
192 site plus two apartments, four star manufactured housing community in the City of Tustin in Orange County. The 55+, senior community was built in 1963 and is in very good condition. The sites range from 35-44 feet in width and 60-75 feet in length. Almost all the sites can accommodate doublewides and the community currently contains 134 doublewides and 58 singlewides.
Site rents are very reasonable and range from $529-$588 plus sub-metered gas, electric, and a flat charge of $4 per month for water. All tenancies are on month to month or one year rental agreements. There is no rent control in the City of Tustin and comparable all age communities in Orange County have site rents up to $1,000.
Amenities include entrance gates, a 3,742 square foot clubhouse and office, 2 pools, 1 spa, and 2 laundry rooms. The land lease expires April 30, 2017 and the land lease payments are 20% of the site rental income. However, every five years either the lessee or lessor can demand a reassessment of the land lease based on 6% of the land value. The lease also contains a provision that the land must be cleared of all structures and tenancy at the end of the lease.
The seller has spent a number of years attempting to buy the land or extend the lease from the land owners. The land owners are in their 80’s and are not willing to do anything at this time. The seller will not give any land owner information to the buyer until the close of escrow. The buyer must buy this property based on the economics of the remaining lease term.
From the Park Brokerage Press Release:
Tustin, California – Saturday, January 22, 2005
194 Site MHC in Tustin on 12¼ Year Leasehold Sells for 16.3% Cap
The leasehold sale of the Tustin Village Mobile Home Park located at 15352 Williams Street in the City of Tustin in Orange County closed on January 19, 2005 for $4,500,000. John Grant of Park Brokerage Inc. represented both parties in the sale.
The 55+, four star community was built in 1963 and has 192 sites and two apartments on 18.42 acres. The community contains almost all doublewide lots, and at the time of sale, there were 134 doublewides and 58 singlewides. The site rents were very reasonable from $545-$606 plus submetered gas and electric. The city sewer, city water, and trash utilities were included in the rent. There is no rent control in the City of Tustin and comparable communities in Orange County have site rents from $750-$1,000. Amenities include an entrance gate, a 3,742 square foot clubhouse and office, two pools, one spa, and two laundry rooms.
The property is on a 12¼ year land lease that expires April 30, 2017. The land lease payments are based on 20% of the site rental income.
Kort and Scott Financial Group was the buyer and Tustin Village Mobile Home Park, Ltd. the seller. The capitalization rate was 16.3% and Kort and Scott paid all cash without financing. The property was in good condition at time of sale.
John Grant commented, 'Orange County manufactured housing communities are in very high demand and rarely come on the market. Tustin is a very desirable market area and Orange County has the highest median housing cost in the nation. The buyer basically bought a 12¼ year annuity with tremendous rental income upside. The buyer can also spend the next 12¼ years attempting to buy the land or obtain a lease extension'.
John Grant sells and finances manufactured housing communities and RV parks exclusively throughout the states of California, Arizona, and Nevada. He has sold 113 manufactured housing communities and RV parks in the last 16 years and financed over 100. John can be reached at 800-987-3363.
Market Time: 60 days
Escrow Length: 45 days
From the Tustin Village Mobile Home Park Rules and Regulations:
The nature of the zoning or use permit under which the Park operates is Mobile Home Park and if subject to a renewal or expiration date is [?]. If the Park is subject to a Lease in which Management is a lessee, the expiration or renewal date of such Lease is April 30, 2034.
Resident Observation: See the [?] above? That was left blank in the Rules and Regulations. The verbiage thereafter is based on an "If" statement. The Rules and Regulations are dated March 1, 2005, this is a scanned excerpt from the copy I received on Thursday, June 26, 2014 at 15:05 from Park Management.
From the Tustin Village Mobile Home Park Resident Lease Agreement dated April 27, 2007, emphasis mine:
Cessation of Business Reference: Government Code Sections 65850-65863.13
Prior to the conversion of a mobilehome park to another use, except pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7), or prior to closure of a mobilehome park or cessation of use of the land as a mobilehome park...