San Fernando Valley, CA Manufactured Community Changes Hands for $13.1 Million

Reseda Mobile Estates, Reseda, CA

RESEDA CA,  March 13, 2014 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Reseda Mobile Estates, an all-age 108-space manufactured housing community in Reseda, Calif.

The $13.1 million sales price equates to $121,300 per space.

Briana Barbier

            Briana Barbier, senior associate and member of Marcus & Millichap’s National Manufactured Housing Communities Group in San Diego, represented the seller, a Southern California-based partnership.

 Barbier also procured the buyer, a national owner of manufactured housing communities with a large regional presence in Los Angeles.

            “Reseda Mobile Estates is a stable, well-maintained community that provides affordable housing in the expensive, high-demand San Fernando Valley rental market,” says Barbier.

“The asset provides the new owner with stable cash flow, minimal management responsibilities and the opportunity for consistent rent growth through annual CPI increases and vacancy decontrol upon turnover.”

            The manufactured home community is located at 6545 Wilbur Ave. in Reseda, Calif. near restaurants, schools, retail shopping and public parks. Apartments and single-family residential neighborhoods surround the community. Reseda is home to a desirable magnet school and a well-regarded charter middle school.

            “There were multiple offers on this property and the bidding process in today’s quality-starved marketplace was very competitive,” continues Barbier. “The primary challenge with this offering was debt restriction. There was existing financing that the buyer was required to assume, at an interest rate approximately 100 basis points higher than today’s rates, and at a less than 50 percent loan-to-value ratio (LTV),” adds Barbier.

 “Fortunately the buyer was able to obtain a small second loan at current interest rates, which increased combined leverage to 56 percent LTV, but the overall debt structure still pushed the cap rate upwards by approximately 100 basis points. 

"The ultimate sales price reflects a cash yield competitive with alternate investment opportunities in today’s marketplace.”

            “Even with assumption of the existing loan and funding of a new loan in a second position, the transaction closed in 75 days,” concludes Barbier. “The relatively quick closing is a testament to the experience and cooperation of all parties.”

            Built in approximately 1960, Reseda Mobile Estates is composed of mostly doublewide homes on 8.57 acres. Amenities include two clubhouses, a swimming pool, spa and a poolside patio with barbecues and outdoor showers. The community receives municipal water and sewer services and all utilities are sub-metered or passed through to the residents.

For a complete copy of the company’s news release, please contact:

Gina Relva,

Public Relations Manager

(925) 953-1716