By: Paul Dionne | Vizzda
An Oak Brook, Illinois-based investor in mobile home parks and a Toronto, Canada-based residential investor have teamed up to acquire Longhaven Estates, a mobile home park in West Phoenix. Erik Hagen of Cobblestone Real Estate and Gary Berman of Tricon Capital paid $14.12m for the age-restricted community of detached mobile homes with $10.575m in purchase money debt with Freddie Mac, maturing in ten years. The seller was Norton Karno, one of the largest single holders of mobile home park product in the Phoenix Market and one-time personal attorney to Scientology founder, L. Ron Hubbard.
The 314 unit mobile home park sits on 37.72 acres at the southwest corner of 51st Avenue and Camelback Road. There are two clubhouses on site totaling 5,775 ft2 built in 1965 and 1968, four on-site laundry buildings, two pools and a shuffle-board court. The property is age restricted to residents above the age of fifty-five, a practice commonly referred to as “Active Adult” communities. The $14.12m sales price reflects $44,968 per mobile home or $374,337 per acre on a land-only basis.
Mr. Karno previously acquired this mobile home park on April 20th, 2004 from John F Long for $9,565,800 or $30,464 per unit. Mr. Long had acquired title to the property in 1998 following a transfer between members of the Long Family and Mr. Long. Mr. Karno put the full amount down for the property and encumbered the property with an additional $4.644m in new debt with CDC Mortgage Capital, Inc.. Ignoring operational costs and proceeds, Mr. Karno achieved an absolute return of 47.6% and an annualized rate of return of 4.579%.
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