|
 |
| |
| |
 |
| SugarOak Success Stories |
|
 |
|
 |
|
| Case Study: |
Sunflower Resort |
| Location: |
Surprise, Arizona |
| Purchase Date: |
March 1995 |
| Size: |
1,200 sites |
| Purchase Price: |
$12,600,000 |
Post-Purchase
Investment: |
$1,000,000 |
| Gross Sale Price: |
$23,500,000 |
| Sale Date: |
May 2002 |
|
|
 |
|
 |
|
|
 |
The Sunflower Recreational Vehicle Resort was an investment of Coastal purchased in March 1995 pursuant to a Section 1031 Exchange.
The total acquisition cost of the RV park was $12,600,000. The property was purchased from the former lender of the property who had foreclosed on the park two years earlier.
The site was one of several dozen “luxury” RV parks that had been built in the outskirts of Phoenix over the previous fifteen years. The common area of the park included swimming pools, community halls, classrooms and other significant infrastructure improvements.
At the time of the acquisition, the park was experiencing serious neglect. The on-site sewage treatment system was failing and occupancy at the park was suffering as a result. SugarOak’s negotiations with the local government enabled the property to obtain access to public sewer at a reasonable cost.
SugarOak also updated common area venues to include a spacious gym area and computer classroom facility. The former site of the sewage treatment plant was converted into a 31-space overnight facility that could accommodate the newer, larger RVs that were entering the market. The total cost of repositioning the RV park was approximately $1,000,000.
Following the repositioning, the percentage of sites with permanent “homes” was increased from 61% to 76%. Operating expenses were lowered by 25% from the previous ownership.
As a result of SugarOak’s efforts, the property was sold in May of 2002 for $23,500,000. |
|
|
|
|
|
|
|
| Site designed and maintained by: Jack Morris Advertising |
|
|
|
