Brand New RV Park Built in 2017

Stabilized RV park with plenty of up-side in a strong market. The park has 127 lots with 91 RV lot rent only tenants each paying $1000. There are 16 brand -new Cabins each paying $2100 lot rents. The current RV occupancy is 100%. There are an additional 20 vacant newly developed lots that can accommodate either Park Models or RV’s.

Bud’s Place RV Park is a 2-year-old all-age RV community. The park offers daily, weekly, and monthly rates. The $1000 monthly rates include city water and sewer utilities. There are newly constructed cabins which include a kitchenette and a full bathroom. Privately maintained roads are freshly sealed with caliche and in good condition as our offering price suggests. The park is in a flood hazard zone. Also, the park is located in an excellent location near all amenities, just minutes to downtown and within 3.4 miles of a Super Walmart.

This park is being offered as a stabilized investment with immediate upside potential. We are looking for cash offers, however recourse bank debt should be available for this deal. At full price, using bank debt (5.5% interest, 20 YR AM, 30% down) the Cash-on-Cash for the park is 24.5% on normalized actuals and 29.9% on Pro Forma. The price per lot is about $62,953 each and includes full infrastructure for each lot.

We are asking our investors to submit offers at or above $7,995,000 for the entire park including the Cabins. The potential return on investment for this park using current actual’s is a 41.2% IRR and a 6.05 multiple on equity.

Highlights:

• Fully operational RV Park
• Double Digit Cap Rate
• 100% RV occupancy, with year round waiting list.
• The lot rent for RV’s is $1000 per month.
• 16 new 2018 cabins that are occupied year round.
• There are no park owned RV or MH units.
• “New Construction! (Property was built in 2017) “
• One of the few RV park in Carlsbad with low rates on municipal water/sewer
• 20 recently constructed mobile home sites ready for homes (Large demand!)
• Brand new one-bedroom site-built cabins with kitchenette and full bathroom.
• All long-pull thru sites with 50 amps and full hooks ups
• Amenities include a stocked fishing pond, luxury-style bathrooms, and laundry room
• 15 minutes to Carlsbad Caverns

Known issues:

• The RV portion of the park is located in a Flood Zone.