California MHP News

Fri, Dec 28, 2018 – We are currently tracking 1,600+ mobiles homes in the Kort & Scott (KSFG) dba Sierra Corporate Management (SCM) inventory. We’ve made significant updates and have confirmed a large percentage of the listings against the MLS/CRMLS. We continue to acquire sales information for the KSFG/SCM mobile home parks and will post additional data once vetted.

Below are real-time statistics for mobile home sales in Kort & Scott owned mobile home parks in California. Click/tap the “Mobile Home Sales Statistics” link below to show/hide statistical data.

Mobile Home Sales Statistics MH Retailers All MH Retailers

Fri, Dec 28, 2018 – The MHPHOA have been tracking “Same Space Turnover” for 256 mobile homes (2013-2018) in the KSFG/SCM inventory. “Transactions” may include Evictions, Auctions and Sales.

The data shows us that the average length of mobile home ownership in a KSFG owned mobile home park is broken down into three (3) timeframes; 12-16 months, 24-28 months and 36-40 months. These timeframes coincide with the 1, 2 and 3 year rent specials being offered for Kort & Scott affiliate owned mobile homes.

• 5 Transactions - 2 Mobile Homes
• 4 Transactions - 3 Mobile Homes
• 3 Transactions - 32 Mobile Homes
• 2 Transactions - 219 Mobile Homes

BHPH 1/3 Evict 2/3 Auction 3/3 Sell Turnover

Note: 3 Step Process – Step 1: Eviction, Step 2: Auction, Step 3: For Sale

2018 Updates: Eviction and Auction activities have declined sharply in 2018. This appears to be mostly due to the business relationship between Kort & Scott Financial Group and Hart | King being severed in late 2017.

Mon, Dec 3, 2018 – Sale Notes: The entity that owns the property is Friendly Village MHP Associates L.P., d/b/a Friendly Village of Long Beach, a California limited partnership (“LP Debtor”). The LP Debtor filed a voluntary petition under Chapter 7 of Title 11 of the United States Code in the Central District of California (“Bankruptcy Court”) on October 2, 2018. The LP Debtor’s general Partner, Friendly Village GP, LLC, a California limited liability company (“GP Debtor”) filed for protection under Chapter 7 of the United States Bankruptcy code in the Bankruptcy Court on October 21, 2018. The cases are Nos. 8:18-bk-13638-ES and 8:18-bk-13864. Richard A. Marshack was appointed and is the acting Chapter 7 Bankruptcy Trustee of both estates.

The LP Debtor and the GP Debtor will be collectively referred to as “Debtors.” The bankruptcy cases were precipitated by ongoing state court litigation commenced on August 13, 2015, by Debtors’ tenants in the Superior Court of the State of California, County of Los Angeles, entitled Celestino Acosta, an individual, et al., v. City of Long Beach, a municipality; Friendly Village Mobile Associates L.P., D.B.A. Friendly Village of Long Beach, a California Limited Liability Company; Friendly Village MHP Associates L.P., D.B.A. Friendly Village of Long Beach, a California Limited Liability Company; Friendly Village, GP, LLC, a California Limited Liability Company; Sierra Corporate Management, Inc.; Kort & Scott Financial Group LLC; and Does 1-100, assigned as Case No. BC591412 (“State Court Action”).

The Plaintiffs in the State Court Action are seeking damages for failure to maintain the mobile home park, nuisance, elder abuse, emotional distress, unfair business practices, retaliatory evection, breaches of contract, warranty and quiet enjoyment (among other complaints). The lawsuit names the Debtors, Kort & Scott Financial Group, and Sierra Corporate Management and others as co-defendants.

On Nov 19, 2018, the jury returned a verdict and awarded compensatory damages of $5.6 million to the _____ plaintiffs who occupied _____ spaces. This phase of the trial represents approximately 20%-25% of the total plaintiffs/spaces in the current State Court Action.

On Nov 27, 2018, the jury returned its verdict in the punitive damages phase of the current trial in a total amount of approximately $34 million, finding liability for the punitive damages as follows: Kort & Scott 55%, Sierra Corporate Management 25%, GP Debtor 10% and LP Debtor 10%.

1. 2018-11-27 – LA Jury Hits Mobile Home Park Owners with $34 Million Punitive Damages Verdict
2. 2018-11-27 – Friendly Village Mobile Home Park – 31 Families Awarded $34M in Punitive Damages
3. 2018-11-20 – LA Jury Awards $5M Verdict to Mobile Home Park Victims
4. 2018-11-19 – Friendly Village Mobile Home Park – 55 of 235 Residents Win $5.57 Million
5. 2018-11-16 – Friendly Village Mobile Home Park – Jury Deliberations
6. 2018-10-25 – Friendly Village Mobile Associates, L.P., a Daniel C. Fischer Company
7. 2018-10-15 – Friendly Village Mobile Home Park – Jury Trial Continues Against Three Defendants
8. 2018-10-12 – Friendly Village Mobile Home Park – Kort & Scott DBAs File Chapter 7 Bankruptcy
9. 2018-09-10 – Friendly Village Mobile Home Park – KSFG and SCM to Face Jury Trial
10. 2017-03-21 – HCD Fails California Mobile Home Owners – Time and Time Again
11. 2016-12-11 – Friendly Village Mobile Home Park – Testing for Methane Levels
12. 2016-11-30 – Friendly Village Mobile Home Park – Legal Battle Involving Methane Leaks
13. 2016-04-03 – Friendly Village Mobile Home Park – HCD Violates 174 of 182 Lots

• Address: 5450 North Paramount Boulevard, Long Beach, California 90805
• County: Los Angeles
• Phone: 562-531-3002
• Spaces: 182
• Type: All Ages
• 2018 Space Rent: $1,500
• Purchased: Feb 2014, Amount: $23,000,000
• Management: Sierra Corporate Management
• 2018-10-08 – New Management: Investors’ Property Services
• DBA: Friendly Village GP LLC, Friendly Village MHP Associates LP
• DBA Filing: Nov 2010, Jan 2014