IPG Buys Manufactured Home Community for $58M

Investment Property Group has acquired Skandia Mobile Country Club for $58 million from the Coulter Family Trust. On 17 acres in Huntington Beach, CA, the property has 167 mobile home units.

The property had multiple offers. It is a trophy asset in a trophy location that is two miles from the ocean and walking distance to the Bella Terra outdoor shopping mall, according to Jeff Benson, SVP of investments at Marcus & Millichap, who brokered the deal. The units are doublewide spaces and all are tenant owned. The community has a pool, spa, game room and clubhouse with a full kitchen. Along with Samuel Neumark, Benson represented the seller in the deal and procured the buyer.

Prior to the pandemic, the Huntington Beach market leads the Southern California region for rent growth. A report at the time from Yardi’s Rent Café, Huntington Beach apartment rents increased 10.8% year-over-year in May, the fastest rental rate growth in Southern California. By comparison, rents in Pasadena increased 1.7% increase at the time, while rents in Santa Monica dropped .8%, illustrating the strength of the Huntington Beach market. Despite the pandemic over the last year, Huntington Beach has remained healthy. According to Neumark, the property has upside potential due to the strong Huntington Beach market and the property quality.

A more recent report from Yardi expects rent growth in the Orange County market this year. It predicts that Orange County rents will increase 1.8% in 2021 in the wake of supply failing to meet demand and the overall economic context. Orange County rent growth took a dive with the start of the pandemic, but continues to outpace the nation, according to the study. Spurred by a continuation of new supply lagging demand, Orange County rents rose 0.3% on a trailing three-month basis through February, outperforming the 0.1% overall US rate, the study said. The county’s $2,164 average rent as of February was well above the $1,399 national norm.