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Shopoff Sells 45-Acre California Manufactured Housing Community for $72.5 Million

Shopoff Realty Investments, a national manager of opportunistic and value-add real estate investments, has sold Brookside Mobile Home Park for $72.5 million, after an 11-month holding period. The manufactured housing community is located in El Monte, California and consists of 421 mobile home sites set on more than 45 acres.

Shopoff Realty Investments, a national manager of opportunistic and value-add real estate investments, has sold Brookside Mobile Home Park for $72.5 million, after an 11-month holding period. The manufactured housing community is located in El Monte, California and consists of 421 mobile home sites set on more than 45 acres.

Shopoff purchased the property in April 2017 together with Ladder Capital (NYSE: LADR), a New York-based real estate investment trust, in a joint-venture partnership for $52.7 million, which included $14.7 million in equity and $38 million in debt provided by Ladder. The sale resulted in a 1.76 property-level equity multiple.

“Brookside Mobile Home Park was off-market and unsolicited when we were approached by the buyer with an offer to purchase the property at an acquisition price substantially higher than our original purchase price,” explained Shopoff Realty Investment CEO William Shopoff. “While the sale of Brookside was certainly unplanned, we ultimately decided the sale would be in the best interest of all partners involved.”

Shopoff’s original business strategy for this acquisition included physical improvements to the property, the addition of new mobile homes to the property’s vacant sites, as well as improving park operations.

“Although we only owned Brookside a short period of time, we were still able to add value to the property,” explained John Santry, executive vice president of Shopoff Realty Investments Land Division. “First, we streamlined park operations by combining the fee land and the leasehold/operations. In addition, we worked closely with the City of El Monte to secure approvals that allowed carports to be built at the property, which was previously not allowed by state code.”

Santry added, “Finally, we were able to change the outdated view of this property with mobile home dealers, ultimately building partnerships with these dealers that will help facilitate the move-in and sale of new homes at the property in the coming year.”

Shopoff Realty Investments is an Irvine, California-based real estate firm with a 26-year history of value-add and opportunistic investing across the United States. The 26-year history includes operating as Asset Recovery Fund, Eastbridge Partners and Shopoff Realty Investments (formerly known as The Shopoff Group).

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