Prestigious Properties is pleased to announce that it’s most recent LP, Kings Castle LP, bought a 67 pad + duplex Mobile Home Park (MHP) in Cranbrook, BC for $2.7M after a lengthy search for MHPs in various locations of BC. Many MHPs are priced on re-development land value and often trade for well above $60,000 to $90,000 per pad.
This represents a roughly 7% CAP rate acquisition in a scenic and growing part of BC with a stable tenant profile. A comparable park in Kelowna with very similar rent per unit is currently for sale at $100,000 per pad.
The City of Cranbrook is committed to it’s continuing development as a successful and progressive community and to preserving, and further enhancing, the high quality of life enjoyed by its residents. The official Cranbrook city slogan is “Mountains of Opportunity” and we’re excited to become part of it!
This MHP carries a $2,025,000 mortgage with a 3.85% interest rate fixed for 3 years and is accretive to the NAV unit value in Kings Castle LP as the appraised value is $3M.
For those that follow BC politics we are happy (or perhaps unhappy) to report that we paid the newly introduced higher 3% land transfer tax on the portion over $2M to help BC balance its budget!
This park is improved with a paved circular road, city water and sewer, and will cash flow right out of the gate!
Thomas Beyer, President
Prestigious Properties Group
T: 403-678-3330 or 604-564-7673