Santa Fe Palms Mobile Home Park

List Price $1,350,000

330 Palm Canyon Dr, Borrego Springs, CA 92004

Exclusive Listing
Jason Lippe

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Price
$1,350,000

Total Sites
27

Price/Site
$50,000

Price/Acre
$419,255

Occupancy
44%

Lot Size
3.22 Acres

Designation
All Age

Year Built
1998

NOI (Year 1)
$84,540

Cap Rate (Year 1)
6.26%

NOI (Year 2)
$131,170

Cap Rate (Year 2)
9.72%

INVESTMENT HIGHLIGHTS

❑ SELLER FINANCING – Attractive seller financing available to qualified buyers:

Price: $1,350,000 (2 POH Included)
Seller Carry: $1,012,500
Down Payment: $337,500
Interest Rate: 8.0% I/O
Term: 5 Years (60 months)
Balloon Payment: Due at end of term, no prepayment penalty.

❑ INFILL OPPORTUNITY – There are a total of 15 vacant MH sites available with utility connections in place for new homes or RVs to be placed. There are two other manufactured home parks on Palm Canyon Drive within 1,000 feet of the Property that are at 94-99% occupancy and achieving rental rates over 50% greater than Santa Fe Palms.

❑ PUBLIC UTILITIES – Santa Fe Palms MHP is served by public water and sewer. Electricity and gas are provided by San Diego Gas & Electric and billed directly to the residents. Trash is collected by Ramona Disposal Services. Water is submetered and billed back to the residents based on usage, sewer and trash are billed back at a flat rate.

❑ TENANT OWNED HOME – The ten occupied tenant-owned home sites feature high-quality, stylish Santa Fe style manufactured homes; a meaningful differentiator that reflects the caliber of the community and supports demand potential as additional sites are marketed.

❑ ATTRACTIVE LOCATION – Santa Fe Palms MHP is in Borrego Springs, a popular desert getaway for retirees and seasonal visitors from across San Diego County, the Inland Empire,

and beyond. The Property is situated directly on Palm Canyon Drive, the town’s main street and primary commercial corridor, placing residents within walking distance of the town's restaurants, shops, and services.

❑ OFFSITE MANAGEMENT – The Property is currently managed by a third-party off-site management company, with additional support from a resident manager. This operational structure can be maintained or optimized by a new owner.

EXECUTIVE SUMMARY

Santa Fe Palms MHP is a 27-site manufactured home community located in Borrego Springs, California within San Diego County's northeastern desert. The Property is offered at $1,350,000 and seller financing is offered for qualified buyers with 25% down payment, 5 year term, and 8% interest-only rate.

The Property consists of 27 HCD-permitted manufactured home sites, 12 of which are occupied. 10 of the occupied sites have stylish, tenant owned homes with “Santa Fe Style” design, paying average monthly space rent of $444. The other two occupied sites have park owned homes which are rented for $1,500 per month, less a $510 credit for the manager’s unit. The 15 vacant sites have utilities present and varying degrees of lot preparation, presenting an in-fill opportunity for the incoming owner. Evidencing demand in this location, there are two manufactured home parks located within 1,000 feet of Santa Fe Palms which are currently 99% and 94% occupied with average rents of $600 per month and $735 per month, respectively. The Property has a professional third-party off-site management company, with day-to-day support from a resident manager who lives in one of the park owned homes and receives a partial rent credit.

The Property is served by public water and sewer and electricity and gas are billed direct to the residents by SDG&E. Community amenities include a clubhouse and swimming pool, enhancing the Property's appeal to prospective residents.

Surrounded by Anza-Borrego Desert State Park, the largest state park in California, and recognized as the state's first International Dark Sky Community, Borrego Springs draws a steady flow of seasonal visitors and retirees from across Southern California and beyond. Santa Fe Palms is well positioned within Borrego Springs, situated directly on Palm Canyon Drive, the town's main street, residents enjoy walkable access to daily conveniences. Borrego Springs golf courses, desert hiking, wildflower seasons, and proximity to both San Diego County and the Inland Empire sustain consistent demand for quality, affordable housing.

Please do not visit, drive through, call, or disturb the property or its residents without prior approval from the listing broker.