Bay Breeze Rv & Mobile Estates - RV Park Store

Bay Breeze
Rv & Mobile Estates

Rv & Mobile Home Park

1300 Lincoln Rd, East, Vallejo Ca. 94591

Offering Memorandum

Bay Breeze Listing Broker:
Rv & Mobile Estates
Norman Sinai II - Broker
Executive Summary
Realty World, Bay Area Group
925-829-7500
[email protected]

Bre license: 01233919

Offering:

Realty World Bay Area Group is Proud to offer for sale, Bay Breeze Rv & Mobile Estates Rv & Mobile Home
Park, located at 1300 Lincoln Rd East, Vallejo Ca. 94591. Solano County.

List Price: $1,100,000

Property information:

Bay Breeze is a 23 space Rv-Mobile Home Park situated on a 29,620 sq ft /.68 acre lot, is zoned as a
Mobile/Rv, Multi use facility, and is licensed for 12 mobile home spaces and 11 Rv spaces and was built in
1966.
Bay Breeze is geared toward long term tenants with their own Rv’s, all tenants are on 1 year leases, resulting
in minimal & infrequent turnover giving greater stability than typical Rv parks.
There is one building on the property which houses a manager’s office, laundry room and storage room,
measuring approximately 36 ft x 16.6 ft total.
The property is on city water & sewer.

Property Highlights:

1. High density area. San Francisco Bay Area location.
2. Well maintained park with recent major upgrades throughout.
3. City utility services.
4. Upside for rental increase.
5. Close to several major freeways, local amenities & shopping.
6. Close proximity to most Bay Area Cities & transit hubs;

(San Francisco is 30 miles, Walnut Creek is 20 miles, Vallejo Ferry Terminal is 3 miles)
7. Great signage exposure on major freeway. Frontage on heavily traveled Interstate 80.
8. Space sizes can accommodate up to 40 ft Rv.
9. Tenants responsible for Electrical, owner pays Water/sewer & trash.
10. All tenants on annual leases.
11. Updated managers office, and on site laundry room & separate storage.

(Including New stucco, dual pane windows, paint, flooring, lights, water heater closet)
12. Newly paved roads (March, 2014). New fencing. New signage.
13. *Housing and Community Development Inspection completed & passed February 2014.
14. Fire Life Safety Inspection completed and passed February 2014.
15. All water, electrical, structural components of park regularly inspected & functioning properly.

Property Location Info:

Vallejo California is located within the Bay Area in Solano County, is approximately 30 miles NorthEast of San
Francisco Ca. Vallejo has a population of Approximately 117,000 and is home to Six Flags Marine World Amusement
Park.

Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.

Bay Breeze Listing Broker:
Rv & Mobile Estates
Norman Sinai II - Broker
Financial & Operational Overview
Realty World, Bay Area Group
925-829-7500
[email protected]

Bre license: 01233919

Location: 1300 Lincoln Rd East, Vallejo Ca. 94591 Number of Spaces 23
Price/Space $47,826
Price $1,100,000 Year Built 1966
Lot Size 29,620 sq ft / .68 acre
Actual Numbers: Type of Ownership Fee Simple

Gross Potential Rent $132,264

Other Income $2,000

Gross Potential Income $134,264

Less: Vacancy/Deductions 4.5% / $6,000

Effective Gross Income $128,264

Less: Expenses $42,526
Net Operating Income $85,738

Cap Rate 7.8
GRM 8.3

Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.

Bay Breeze Listing Broker:
Rv & Mobile Estates
Norman Sinai II - Broker
Income & Expense
Realty World, Bay Area Group
925-829-7500
[email protected]

Bre license: 01233919

Income (Based on March 2014 rent roll)

# of units/ Monthly rent Monthly Yearly (annualized)

10 $500 $5,000 $60,000

11 $462 $5,082 $60,984

1 $440 $440 $ 5,280

Laundry $100 $ 1,400

Other income $ 50 $ 600

Total Income $10,672 $128,264 (Current with1 vacant space)

At full w/1 additional space $ 500 $ 6,000

Total Income: Full $11,172 $134,264

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Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.

Bay Breeze Listing Broker:
Rv & Mobile Estates
Norman Sinai II - Broker
Income & Expense
Realty World, Bay Area Group
925-829-7500
[email protected]

Bre license: 01233919

Income Per March Rent Roll: (Current) Proforma
Space Rent $126,264 $144,900
Laundry $ 1400 $ 1400
Other income $ 600 $ 600
Gross Income 128,264 (Actual current income) $146,900
Expenses $ 6,300 (4.3%) $140,600
Property Taxes Vacancy factor $11,600
Insurance $ 2,007
Management $ 4,688 $ 6,300
Repairs & Maintenance $ 2,007 $ 2,400
Electric $ 6,000 $ 2,700
Water $ 2,400 $ 3,000
Sewer $ 2,700 $ 12,233
Garbage $ 3,000 $ 7,985
Accounting/Legal $ 12,233 $ 600
Licenses / Permits $ 7.985 $ 913
Total Expenses $ 600 $ 49,738
Net Operating Income $ 913 $ 90,862
$ 42,526
$ 85,738 (Current)

Proforma notes: Bringing the tenant base to a monthly rent of $525 per month would obtain an annual gross rental
income of $144,900 + $2,000 other income = Total Gross rental income of $146,900.
Minus vacancy factor of 4.3% and expenses of $49,738 (This also considers property taxes at the new acquisition price
of 1.1 million) = $90,862 Net Operating Income & a Cap of 8.26. This is an increase in net income of $5,124 annually.

Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.

Bay Breeze Listing Broker:
Rv & Mobile Estates
Norman Sinai II - Broker
Overview
Realty World, Bay Area Group
925-829-7500
[email protected]

Bre license: 01233919

Bay Breeze is a stable, professionally managed & well maintained Rv/Mobile home park located in a high density area
within the San Francisco Bay Area. Although zoned for Mobile Homes & Rv’s, the park best lends itself to RV’s in
relation to space size (up to 40 ft). *All tenants in the park are on annual leases, with many tenants residing at the park
for over 3 years, some as long as 18 yrs.

The current owner has already taken the time & expense to make any needed repairs & upgrades giving the new
owner a truly turnkey property. The newly updated manager’s office has a bathroom and storage area, the building
also has a separate storage room, as well as fully updated laundry facilities. Each space is separately metered for Pge &
billed direct from pge to tenant, Owner pays water/sewer/trash. The property is well maintained, rules & regulations
are strictly upheld in the park, which has created a culture of respect among the tenants and management. Bay Breeze
is competitively priced in terms of rent, and approximately half of the park is still at below market rent.

Due to the park location being within a high density area and within the San Francisco Bay Area, there is an
abundant demand for low priced housing accommodations. Filling vacancies is fairly easy requiring as little as placing
free local ads on craigslist to attract tenants.

The city of Vallejo adheres to rent control with 5% annual increases allowed. New occupants are able to be charged
whatever the owner chooses. (However, exceeding 5% annual increases for existing tenants may not be the best value
play for the park, making the rent control somewhat inconsequential)

*There is no seller or assumable financing available on this property.

Recent capital expenditures:

*New Paving
*New striping/space numbers
*Mangers office:

New paint interior/exterior
New stucco
New windows
New doors, baseboards, lighting
*Laundry room:
New windows
New paint
New water heater closet
New flooring
*New fencing
*New signs
*Updated electrical throughout park
*Replaced sections of outdated plumbing

Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.



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*Image above is prior to recent paving.

Information deemed reliable but not guaranteed. Buyer should verify data for its accuracy prior to purchasing.