Bayside Trailer Park

Price: $2,385,316
Cap Rate: 6.000

Units: 31

Chula Vista, California

Bayside Trailer Park is ideally located at 1424 Broadway in downtown Chula Vista. The property is comprised of two parcels, a 1.42 acre historically full 31 home site mobile home park, and an additional .28 acres of an automotive industrial park including the Economy Tire (leased auto shop). Ten percent of the County of San Diego’s population is within a 5 mile radius of the site, which will continue to service the high demand for affordable housing in the city.
The mobile home park consists of 31 home sites with many long-term tenants and a very high historical occupancy. The property frontage along Broadway is serviced by a long term tire and auto shop tenant (Economy Tires). Economy Tires has a well below market lease agreement that was grandfathered in to the current owners. The agreement states that the lease will be $650/month until April 2011. The owner/seller has agreed to guarantee a $2500/month lease until terminated in April 2011 by crediting back to the new buyer at close the difference between the current lease rate and a more realistic market rate of $1 per square foot. This will allow a new owner to significantly increase the value of the auto shop upon resigning the tenant at a realistic market rent.
A new owner/investor will be very pleased at the consistent income from both cash-flowing and relatively management free properties on the site. In addition the ideal location and the growing demand for affordable housing in the region will ensure a new owner of continual performance.