Highlights

• 75 Space, 2 Star, All Age Community with a Single Tenant Commercial Unit
• Well Water Included in the Rent
• 98.7% Occupied

• Additional Unused Acreage for Storage
• Sub-metered Gas, Electric, Sewer and Trash

Description

Locust Grove is a 75 space two (2) star Manufactured Home Community, a Single Tenant Commercial unit (Feed Store) and approximately 1.5 acres of vacant C-2 property on Avenue I all situated on a 9.38 acre parcel. Located near the Sierra Highway corridor, the property is 98.7% occupied and is in a high-demand rental area of Lancaster.

Subject to City of Lancaster rent control, the property has rents of $235.67 which are at the low end of the rent spectrum. The City has granted a $72.66 rent increase in 2006 which was spread over the following four years. The current income reflects the final $18.17 increase which takes effect August 1, 2009 plus the annual CPI increase applied to the rent of $228.42 which raised the rent to $235.67 effective February 1, 2009. The August increase will bring the site rent to $253.84.

There is a pool, spa, laundry room, RV storage and office onsite and there is ample off street parking for the residents. The pool and spa have been drained and are not currently in use. The property is well served with city sewer and submetered gas and electric. Trash and sewer are paid by the tenant while water is included in the rent.

Locust Grove is a 98.7% occupied two (2) star community located in Los Angeles County priced at a 7.79 CAP on current actuals with 58% of SGI with $2,797 per site in expenses. The community has rents in the $253 ranges (low end of Lancaster rent range) a commercial store on an annual lease and additional acreage for rent or lease. The close of escrow cash flow return is double digit with in place management. The modest annual increases will keep the cash flow growing at 60% of CPI. The new buyer can also petition the Rent Control Board for an increase based on capital improvements and the property tax increase incurred upon sale. There is a cell tower on site which pays $1,500 monthly.