Three Pillar Communities Sells Central California MHC for $10M

The 96-site Royal Palms Mobile Home Estates previously traded in 2019.

Royal Palms Mobile Home Estates. Image courtesy of Three Pillar Communities

Three Pillar Communities has sold Royal Palms Mobile Home Estates, a 96-site manufactured housing community in Tulare, Calif. The property traded for $10.2 million at a 35 percent annualized rate of return for the company’s investors.

The seller previously purchased the asset in 2019 for $5.5 million, with Berkadia Commercial Mortgage Managing Director Art Tuverson originating the acquisition financing. Public records show the $3.9 million Freddie Mac debt was set to mature in 2029.

READ ALSO: Why Manufactured Housing Is Growing on the 55+ Age Group

Located at 560 W. Pleasant Ave., the over 55 community is less than 2 miles from several retail and dining choices, as well as roughly the same distance to a health clinic. Completed in 1968, the community features common-area amenities such as a pool, clubhouse and lending library.

Marcus & Millichap Senior Associate Sam Neumark and Northmarq Managing Director Jeff Benson brokered the deal. The team has brokered more than $200 million of mobile home park transactions in the past three years. A different Marcus & Millichap team brokered the sale of a five-property portfolio in Central Florida for $38 million. All the manufactured housing properties are within 50 miles of downtown Orlando.

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