6. 6 EXECUTIVE SUMMARY
Marcus & Millichap is pleased to present Skandia Mobile
Country Club, a five-star, 55+ manufactured housing
community located in Huntington Beach, CA. The
offering presents a rare opportunity to acquire a trophy
asset in one of Southern California’s most sought-after
destinations. The community consists of 167 spaces, which
are primarily double-wide and all tenant-owned homes.
The park is on city water & sewer services, and includes
amenities such as a clubhouse and pool.
There are no local rent control ordinances within
Huntington Beach, enabling a new owner to achieve
significant upside by bringing the existing rents to
reasonable market rates. Based on an analysis of
manufactured home communities within this market of
comparable quality, average market rents are $2,325,
while existing lot rents at Skandia are significantly lower,
averaging $1,099 per pad.
The property is located 2 miles from the beach, and is
within walking distance from a number of restaurants,
entertainment venues and schools. The average home
value in Huntington Beach is $946,271, having increased by
8.7% over the past year and expected to continue to grow
over the coming years. This offering presents a unique
opportunity for a buyer seeking a long-term hold, within
one of the most attractive markets in Southern California.
The
The
Offering
Offering
9. 9
GROWTH &
UPSIDE POTENTIAL
• Rents are significantly below market.
Opportunity to raise existing rents to
market over a reasonable period of time
• No rent control ordinance in Huntington
Beach
• Average home value in Huntington
Beach has increased by 26% in the past
5 years, and 8.7% over the past year
alone
CENTRALLY
LOCATED
• Less than 2 miles from the
beach
• Within walking distance to
schools, entertainment venues,
and restaurants
TROPHY MHC
ASSET
• Five-Star, 167-space 55+ community
located in Huntington Beach, CA
• Primarily double wides
• City Water & Sewer Services
• Amenities such as Clubhouse & Pool
• All Tenant-Owned Homes
11. 11
A seaside oasis in Orange County, Huntington Beach is a beach lover’s
dream. The city is flanked by 8.5 long miles of stunning coastline, with
year-round mild climate and exceptional surfing—it’s Surf City, USA
after all! When it comes to the ideal California setting of surf, sand,
and sun, Huntington Beach has it all.
Huntington Beach offers the quintessential California lifestyle. With
mentions in iconic surf tunes such as “Surfin’ Safari” by the Beach
Boys, Huntington Beach cemented it’s notability for being home to
some of the state’s cleanest and safest beaches. Residents of the city
enjoy not only the amazing weather and beaches, but also a thriving
economy with a number of employers offering solid jobs, a fantastic
housing market with a wide array of home types, a strong educational
system, and more.
Its location in between
Los Angeles and
San Diego means
residents are never
too far from events
in either city, but
Huntington Beach also
has its own offering of
entertainment. With
a wide selection of
restaurants, nightlife,
and events, Huntington
Beach residents find
themselves at the
intersection of city
perks and a surf
culture.
Huntington Beach
Huntington Beach
15. 15
Address
16444 Bolsa Chica Street
Huntington Beach, CA 92649
Price Open Bid
APN 146-031-10
Spaces 167
Year Built 1963
Lot Size 17.35 AC
SUMMARY
INTEREST OFFERED
100% fee simple interest in a 167-space
manufactured home community located at 16444
Bolsa Chica Street, Huntington Beach, CA 92649.
TERMS OF THE SALE
Property is being offered on a free and clear basis.
PROPERTY TOURS
Prospective purchasers are encouraged to visit
the site prior to submitting offers. Please do
not contact the on-site management or staff
without prior approval. All property tours must
be coordinated through the listing team and are
subject to approval by ownership.
Summary
Summary
of Sale
of Sale
16. 16 EXECUTIVE SUMMARY
REPAVE ROADS ENHANCE
POOL AREA
UPGRADE
CLUBHOUSE
OUTDOOR KITCHEN ADD CAR WASH
CREATE DOG PARK
Value-Add
Value-Add
Opportunities
Opportunities
20. 20 PROPERTY OVERVIEW
Constructed in 1963, Skandia
Mobile Country Club is a five-
star asset comprising 167
spaces, situated on 17.35 acres in
Huntington Beach. This property is
a 55+ senior community consisting
of single, double, and triple wide
homes. This unique trophy asset
is in a non-rent-controlled market,
located two miles away from the
beach. Skandia offers its members
an excellent clubhouse with a full
kitchen, billiards, shuffleboard,
pool, and spaÂ
—making it the perfect
spot to entertain guests. Residents
enjoy an array of activities as it is
positioned within a ten-minute drive
to shops, restaurants, and parks.
Additionally, golfers enjoy the
proximity to a nearby golf course,
being only one mile away at the
Meadowlark Golf Club.
The
The
Opportunity
Opportunity
21. 21
Property
Property
Details
Details
Name Skandia Mobile Country Club
Address
16444 Bolsa Chica Street
Huntington Beach, CA 92649
County Orange
Spaces 167
Park Type 55+
APN 146-031-10
Land Use RPM (Mobile Home Park)
Year Built 1963
Lot Size 17.35 AC
Amenities Clubhouse, Pool, Spa, Full Kitchen, RV storage
PROPERTY DESCRIPTION
Water/Sewer/Trash
City services, passed through to tenants,
provided by the City of Huntington Beach
Electricity
Passed through to tenants, provided by
Southern California Edison
Gas
Passed through to tenants, provided by
Southern California Gas Company
UTILITIES
Single Wide
3
Double Wide
162
UNIT
MIX
Triple Wide
1
2.5 Wide
1
27. 27
Financial
Financial
Analysis
Analysis
PRICING
List Price OPEN BID
PROPERTY DETAILS
Year Built 1963
APN 146-031-10
Lot Size 17.35 AC
CURRENT RENTS PRO FORMA RENTS
Unit Type Spaces
Average
Space Rent
Monthly
Income
Average
Space Rent
Monthly
Income
Loss to
Lease %
MH Lot 167 $1,099 $183,576 $2,195 $366,565 99.68%
ANNUALIZED OPERATING DATA CURRENT
PRO
FORMA
Expenses
Real Estate Taxes** 1.09927% TBD TBD
Insurance $27,373 $27,373
Cleaning & Maintenance $12,925 $12,925
Dues & Subscriptions $3,327 $3,327
Rental Equipment $500 $500
Furnishings $4,728 $4,728
Repairs & Maintenance $200/space $33,400 $33,400
Office Expense $15,619 $15,619
Payroll * $60,000 $60,000
Permits & Licenses $6,176 $6,176
Professional Fees * $7,500 $7,500
Utilities $252,386 $252,386
Management Fee 3.5% $74,789 $149,339
TOTAL EXPENSES $498,722 $573,271
ANNUALIZED OPERATING DATA CURRENT
PRO
FORMA
Gross Scheduled Rent $2,202,912 $4,398,780
Gain/Loss to Lease $2,195,868 $0
Less Vacancy 3% $66,087 3% $131,963
Effective Rental Income $2,136,825 $4,266,817
Utility Income $263,508 $263,508
Effective Gross Income $2,400,333 $4,530,325
Less Expenses $498,722 $573,271
NET OPERATING INCOME $1,901,611 $3,957,053
See page 27 for additional information regarding
expenses and assumptions
Property taxes are not included due to open bid sale.
In California, due to Proposition 13, property taxes are
recalculated based on the new purchase price. The tax
rate within Huntington Beach is 1.099%.
*
**
28. 28
Income & Expense
Income & Expense
CURRENT PRO FORMA
Average Space Rent $1,099 $2,195
REVENUE PER SPACE PER SPACE
Gross Scheduled Rent $2,202,912 $13,191 $4,398,780 $26,340
Loss/Gain to Lease $2,195,868 $13,149 — —
Vacancy (3%) $66,087 $396 $131,963 $790
EFFECTIVE RENTAL INCOME $2,136,825 $12,795 $4,266,817 $25,550
Utilities $263,508 $1,578 $263,508 $1,578
EFFECTIVE GROSS INCOME $2,400,333 $14,373 $4,530,325 $27,128
EXPENSES
Real Estate Taxes** TBD TBD
Insurance $27,373 $164 $27,373 $164
Cleaning & Maintenance $12,925 $77 $12,925 $77
Dues & Subscriptions $3,327 $20 $3,327 $20
Rental Equipment $500 $3 $500 $3
Furnishings $4,728 $28 $4,728 $28
Repairs & Maintenance ($200/space) $33,400 $200 $33,400 $200
Office Expense $15,619 $94 $15,619 $94
Payroll * $60,000 $359 $60,000 $359
Permits & Licenses $6,176 $37 $6,176 $37
Professional Fees * $7,500 $45 $7,500 $45
Utilities $252,386 $1,511 $252,386 $1,511
Management Fee (3.5%) $74,789 $448 $149,339 $894
TOTAL EXPENSES $498,722 $2,986 $573,271 $3,433
Expenses Per Space $2,986 $3,433
NET OPERATING INCOME $1,901,611 $3,957,053
FINANCIAL SUMMARY
29. 29
Assumptions
Assumptions
ECONOMIC VACANCY
Economic vacancy is estimated to be 3% annually. While this park may
not experience such vacancy, most lenders will use a minimum vacancy
assumption of 3%,.
LOSS-TO-LEASE
There is significant upside to the existing under-market rents, with a loss
to lease factor of 99%.
UTILITY INCOME
The following expenses are billed back to the tenants: water, gas, sewer
trash.
PROPERTY TAXES
Property taxes are not included due to open bid sale. In California,
due to Proposition 13, property taxes are recalculated based on the new
purchase price. The tax rate within Huntington Beach is 1.099%.
RENT CONTROL
There is no rent control for manufactured housing communities within
Huntington Beach. Therefore, our pro-forma rates are based on market
rents from a comprehensive rent survey conducted in the immediate
area.
MANAGEMENT FEES
Management fees for larger multifamily and manufactured housing
assets range from 3-5%, based on the property’s gross revenue. Due
to the size of this asset and gross income potential, we estimated an
agency lender will use a management fee of 3.5%.
OTHER EXPENSE ASSUMPTIONS
Based on lender treatment for manufactured housing communities and
our understanding of the asset at hand, the following expenses were
either added or substituted to the existing operating expenses.
• Repair & Maintenance is estimated at $200/space/year
• Payroll expense estimated at $60,000/year
• Professional expenses estimated at $7,500/year
35. 35
Rent Comparables
Rent Comparables
PROPERTY
YEAR
BUILT
SPACES OCCUPANCY
SPACE
RENT
ALL AGES
OR 55+
COMMUNITY AMENITIES NOTES DISTANCE
SKANDIA MOBILE
COUNTRY CLUB
16444 Bolsa Chica St
Huntington Beach, CA
92649
1963 167 100% $1,425 55+
Clubhouse, Billiards Room,
Shuffleboard, Event Space,
Pool, Spa, Full Kitchen, RV
Storage
1
HUNTINGTON
SHORECLIFFS
20701 Beach Boulevard
Huntington Beach CA
1973 304 98% $2,250 All Ages
Clubhouse, Multiple Pools,
Spa, Exercise Center, Laundry,
Game Room With Billiards
and Shuffleboard, Event
Center, RV storage
This is not applicable to POH rents 5.27 mi
2
SURF CITY
BEACH COTTAGES
80 Huntington St
Huntington Beach CA
1942 264 100% $2,300 All Ages
Clubhouse, Pool, Spa,
Exercise Center, Laundry,
Event Center Car Wash, RV
Storage
This is not applicable to POH rents 5.44 mi
3
RANCHO HUNTINGTON
MOBILE PARK
19361 Brookhurst St
Huntington Beach CA
1965 194 100% $2,350 All Ages
Clubhouse, Pool, Event
Center, Laundry, Game Room
With Billiards, Library
5.7 mi
4
HUNTINGTON BY THE SEA
MOBILE ESTATES
21851 Newland St
Huntington Beach CA
1969 306 100% $2,400 All Ages
Clubhouse, Pool, Spa,
Exercise Center, Game Room
With Billiards, Laundry
6.28 mi
AVERAGE 1962 267 99.5% $2,325
1
4
3
2
37. 37
Sales Comparables
Sales Comparables
PROPERTY
YEAR
BUILT
SPACES OCCUPANCY SALES PRICE
PRICE/
SPACE
SALE
DATE
ALL
AGES OR
55+
AMENITIES NOTES DISTANCE
SKANDIA MOBILE
COUNTRY CLUB
16444 Bolsa Chica St
Huntington Beach, CA 92649
1963 167 100% Open Bid 55+
Clubhouse,
Billiards Room,
Shuffleboard, Event
Space, Pool, Spa,
Full Kitchen, RV
Storage
1
HUNTINGTON BY THE
SEA & CABRILLO MOBILE
ESTATES
21851 Newland St
Huntington Beach CA
1969 441 100% $194,800,000 $441,723 9/30/20 All Ages
Clubhouse, Pool,
Spa, Exercise
Center, Game Room
With Billiards,
Laundry
This was a
portfolio sale
6.28 mi
2
TRADE WINDS MOBILE
HOME PARK
2131 Harbor Blvd
Costa Mesa, CA 92627
1954 73 100% $19,425,000 $266,096 9/4/20 All Ages None 8.57 mi
AVERAGE 1958 $353,910
1
2
40. 40 MARCUS & MILLICHAP CAPITAL CORPORATION DEBT QUOTE
OPTION 1 OPTION 2 OPTION 3
Bank
5-Year Fixed
Bank
7-Year Fixed
Bank
10-Year Fixed
INTEREST-ONLY PERIOD 0-3 Years 0-3 Years 0-3 Years
FIXED PERIOD 5 Years 7 Years 10 Years
AMORTIZATION 30 Years 30 Years 30 Years
INTEREST RATE (3/24/2021) 3.20% 3.25% 3.55%
ACTUAL DSCR 1.20X 1.20X 1.20X
MINIMUM DSCR 1.20X 1.20X 1.20X
PREPAY 3,3,2,2,1% 4,3,3,2,2,1,0% 5,5,4,4,3,3,2,2,1,1%
Marcus & Millichap
Marcus & Millichap
Capital Corporation
Capital Corporation
Debt Quote
Debt Quote
41. 41
OPTION 4 OPTION 5 OPTION 6
Agency
Tier 2
Agency
Tier 3
Agency
Tier 4
Up to 5 Years Up to 10 Years Up to 10 Years
10 Years 10 Years 10 Years
30 Years 30 Years 30 Years
3.39% 3.29% 3.09%
1.25X 1.35X 1.55X
1.25X 1.35X 1.55X
Yield Maintenance Yield Maintenance Yield Maintenance
OPTION 1 OPTION 2 OPTION 3
Agency
Tier 2
Agency
Tier 3
Agency
Tier 4
Up to 5 Years Up to 5 Years Up to 7 Years
7 Years 7 Years 7 Years
30 Years 30 Years 30 Years
3.10% 2.99% 2.79%
1.25X 1.35X 1.55X
1.25X 1.35X 1.55X
Yield Maintenance Yield Maintenance Yield Maintenance
43. B O L S A C H I C A S T R E E T
16444
A 167-SPACE MANUFACTURED HOUSING COMMUNITY LOCATED IN HUNTINGTON BEACH
44. JEFF BENSON
Senior Vice President Investments
Director, National Multi Housing Group
Direct | 310.909.5420
jeff.benson@marcusmillichap.com
License: CA 01327285
SAM NEUMARK
Investment Sales Associate
Direct | 310.909.5433
samuel.neumark@marcusmillichap.com
License: CA 02090800
B O L S A C H I C A S T R E E T
16444