Sierra Holiday Mobile Home Park

Sierra Holiday Mobile Home Park is a 77-space park located in the resort market of Mammoth Lakes, California. The town is a year-round tourist destination for Southern California and features one of the largest and most highly regarded ski areas in North America. The local housing market features a median single-family home price of almost $1.2M.

As you can imagine, we weren’t the only prospective buyer for this property. Another buyer offered a higher price than we were willing to pay, but when they were unable to perform, the seller came back to us, and we worked out a price that was even lower than our original offer.

The park was developed and owned by the same family for over 50 years, and while it has been well maintained, the previous owners failed to maximize the potential of the property. A limited housing stock coupled with high demand leaves significant room for rents to increase – the primary value driver for this asset. Current space rent is $965 per month, and we believe that the market should support over $1,300 per month. No local rent control exists, which will allow us to quickly bring rents to market and increase NOI. The park also benefits from direct billed water, sewer, electric, and gas thereby eliminating significant overhead cost. Our business plan is to spend approximately $250,000 improving the park entrance, signage, asphalt, and electrical and water systems while bringing the rents to market. The combined impact of increasing rents to market and optimizing expenses is projected to result in an increase to NOI of over 80% by year 5.

  • Date Acquired: 13 Dec, 2022

  • Acquisition Price: 11,200,000

  • Spaces: 77

  • City/State: Mammoth Lake, CA

Investment Package