Manufactured Housing Alert
In February, less than a year after purchasing the Brookside Country Club manufactured housing community in El Monte, Calif., for $52.7 million, Shopoff Realty Investments sold the 421-site property to RHP Properties for $72.5 million.
Many long-timers in the manufactured housing industry rolled their eyes at the purchase price and questioned the wisdom of the investor. However, we believe RHP, the third largest community owner in the country, knows exactly what they’re doing.
After surveying the rental market, RHP Properties saw the high demand for affordable housing. They also recognized the potential to add value to Brookside through physical improvements and the addition of new manufactured homes to vacant sites to increase the occupancy of the park.
Ross H. Partrich, CEO at RHP Properties, was quoted in GlobeSt.com, “This property was well positioned in the market as it related to the high cost of multifamily and single-family residential rents. This was an excellent opportunity to break into the California market. We saw vacant home sites that we can fill with brand new affordable homes for residents. It’s a good upside for us and a great value for the residents.”
Partrich also added that they are continuing to look for opportunities in this market and are actively looking throughout California.
This purchase is an indicator of just how strong the California market is and of the fervent appetite for this product type. Manufactured housing operators are purchasing parks in spite of their perceived high cost. Whether for redevelopment of the property, adding new manufactured housing, or upgrading the property, the real estate market indicates that there is great upside potential.