TAMPA, Fla., March 1, 2011 /PRNewswire/ -- While mortgage financing is in general more difficult than in years past, bank lending for mobile home parks has become virtually non-existent. Cash buyers of mobile home parks compete only with other cash buyers. "For the first time in over the 20 years that I have been in the business, cash buyers are acquiring mobile home parks in good neighborhoods with ROI in the high teens," said Andrea Ciuba, CCIM and Managing Member of Global Commercial Real Estate Services, a commercial brokerage and property management company specializing in mobile home parks.
Because most zoning in Florida no longer permits development of mobile home parks, supply is short. Banks aren't lending on these properties. "The old adage that 'Cash is King' rings truer than ever. Fact is trumping fiction. We've got a lakefront listing priced at 17 cap and another property near good schools for 20 cap. Both communities are in good, single-family neighborhoods," said Janel Rand, Director of Sales at Global Commercial.
"Under Florida law, most mobile home parks today fall under a provision called 'legally non-conforming.' It's similar to grandfathering. Development of the mobile home park was legally permitted prior to a change in the law but re-development is no longer allowed," said Mrs. Ciuba.
"The real estate boom caused many mobile home parks to be converted to higher-end uses. The rental supply isn't sufficient," said Mrs. Ciuba.
Communities in which the manufactured homes are rented out by the park owner are commonly called Chapter 83 parks while lot rentals are typically called Chapter 723 parks. The Chapters refer to the relevant Florida statutes. "Chapter 83 properties are more often legally non-conforming and generally much more profitable," said Mrs. Ciuba.
"It's great value for cash buyers; I'm using savings generated from brokering and managing to buy small legally non-conforming mobile home parks for myself," said Mrs. Ciuba, who is also managing member of Affordable Rentals LLC.
Many states have sufficient supply of working family mobile home parks and others have rent control - factors that depress rents. Not so in Florida.
With rising interest rates and higher down payment requirements, hard-working people can't buy. Mobile home park living offers residents their own driveway, no apartment above their ceiling and often a toolshed and a yard for the kids to play in. "Florida is a great place to invest. No state income tax, no state inheritance tax, sunshine and beautiful weather," said Janel Rand.
About Global Commercial Real Estate Services
Global Commercial Real Estate Services, LLC is an Investment Brokerage Company serving all of Florida. We provide consultation, management, acquisition, and disposition services for all types of Commercial Investment Real Estate. We specialize in manufactured housing community sales, management, leasing, market rent analysis, due diligence and 1031 tax exchanges.
SOURCE Global Commercial Real Estate Services, LLC