709 River Road, Modesto , CA 95351
Modesto MH & RV Park Portfolio
The subject properties represent an opportunity to purchase a three-park portfolio in unincorporated Modesto, California totaling 120 sites. The parks were built by the Army Corps of Engineers, per the current owners. The parks are adjacently located at 637, 649, and 709 River Road in Modesto, California. Built in 1950, and situated on 2.37 acres, 637 River Road is commonly known as Terrace Trailer Park. It is comprised of 36 RV spaces and 8 mobile home spaces, for a total of 44 sites. Currently, only 43 of the spaces are occupied, but there is room to add another space at the park entrance by placing a home on a vacant site and working with the power company to resume services. Water, sewer, and gas are already available. Built in 1946 and further expanded in 1962, 649 and 709 River Road are commonly referred to as Driftwood Mobile Home Park(s). Driftwood is situated on 5 acres of land. The site breakdown of the combined Driftwood Mobile Home Parks is 65 RV spaces, 9 mobile home spaces, a duplex, a park-owned mobile home, and two single-family homes. This creates a total of 76 fully-occupied sites. The parks are on public water and septic. Rents currently include water, sewer, and garbage and rents are well under market compared to similar properties in the Modesto area. All the tenants own their homes with the exception of one manufactured home and the stick-built structures. The roads are asphalt, in fair to good condition. There are seven septic tanks at Driftwood, two of which were replaced in 2015. There are six septic tanks at Terrace Trailer Park. Amenities at the parks include on-site coin operated laundry, storage, office, and manicured green space with beautiful river frontage on the Tuolumne River. Driftwood operates with an on-site manager and maintenance manager. The on-site manager receives reduced rent in exchange for their services. The maintenance manager receives $750 per month in compensation. The on-site manager at Terrace Trailer receives free site rent and $790 per month. All employees would like to continue working at the parks if a new owner would like them to stay. The properties are 1.6 miles from downtown Modesto, and near major industrial employment centers including Gallo winery headquarters, Modesto Airport, Pepsi Bottling Group, Americold Logistics, and many others. The assets are located near attractive amenities for tenants including parks, schools, grocery, restaurants, and public services. Terrace and Driftwood Parks are located in unincorporated Modesto, where there is not an official city ordinance regulating rent control. This provides an astute investor the opportunity to bring rent closer to the market average faster than comparable properties in California. Terrace Trailer Park recently increased rents as of February 2022, however the rental rates remain well-below market averages. Driftwood has not had a rent increase since the pandemic began. This rare opportunity is ideal for an investor looking to acquire a sizable portfolio of parks with economies of scale of more than 120 spaces. Investors can immediately benefit from strong occupancy and cash flow with a path towards continued rental growth upside. The parks have been maintained in a manner where there is minimal deferred maintenance and need for capital improvement. The new owner can benefit from substantial upside by increasing cash flow by raising rents, incorporating a utility reimbursement or surcharge, and improving the quality of the tenant-mix.
Broker (Manufactured Housing)View Profile
Ashley Offensendview profile