RV Park/Campground Details
- Purchase Method: Cash, New Loan
- Cap Rate: 11.0%
- Listing ID: 574602
- Posted On: Oct 21, 2015
- Updated On: Apr 22, 2016
Description
The RV Park currently has 3 mobile home sites, which could be converted to 9 RV pads. 42 Available RV Pads. One Smaller RV Pad. Each Space has 2 sparking spaces with additional guest parking.
Oakwood Village RV Park currently produces a stabilized annual net cash flow of $225,000 with substantial upside potential to effectively double that net operating income with available room and demand for expansion. The surrounding area has enjoyed significant population and job growth on account of the expansion and
development of several multi-billion dollar industrial and chemical processing facilities. As the Panama Canal expansion is slated to complete in 2016, Brazoria
County and the surrounding area has been booming with growth associated with all of the import and export businesses that will benefit from the increased shipping demand. Oakwood Village is well positioned to partake in this growth.
Immediate Potential: The RV Park currently has 3 mobile home sites, which could be converted to 9 RV pads. Upon conversion and lease‐up of the RV pads,
the park would produce an additional $30,000 in revenue, and a 30% return on the estimated cost of tearing down the mobile homes and laying concrete for the RV
pads.
Expansion Potential: The site includes 4.5 acres towards the rear of the site that can be developed to add an additional 80‐100 units to the RV park. Once fully developed, the park would provide over a 20%+ (cap rate) unleveraged cash flow (including conservative costs of development).
Park Information
Number of RV Lots: | 46 |
Year Built: | 2014 |
Average RV Lot Rent: | $425 |
Size: | 6.8 acre(s) |
Development Land: | This is land for developing a RV park. |
Financial Information (Pro Forma)
Gross Income: | $181,536 |
Operating Expense: | $72,300 |
Net Operating Income: | $109,236 |
Expense Ratio: | 39.8 % |
Utility Information
Water: | City |
Sewer: | City |