Multi-Million Dollar Mobile Home Park Deals in California Bay Area
A couple from Atherton, California, considered the wealthiest town in America, has paid $40.7 million for a 315-space mobile home park in San Jose.
A family trust led by John and Margaret Worthing bought the Rancho Teresa Mobile Home Estates at 510 Saddle Brook Drive in Edenvale, the San Jose Mercury News reported. The cost was $129,200 per space.
The new owners also obtained a $30-million loan from First Foundation Bank when they bought the park. The Worthing family trust is not involved in real estate development, according to an online search by the newspaper.
Rancho Santa Teresa sits on 34 acres and includes a clubhouse with a kitchen, swimming pool, walking paths, and a barbecue pit.
Investors and real estate developers have been buying up mobile home parks in the South Bay and the Bay area at large.
Pulte Homes, based in Atlanta, paid $50 million last year for the 110-space Winchester Ranch Mobile Home Park in San Jose. The park has been bulldozed to make way for 320 single-family homes and 368 apartments.
Other mobile home park deals appear to be investments in leasing space to double-wides.
Hometown America Communities, based in Chicago, paid $39 million in March to buy Mary Manor Estates, a 116-space mobile home park in Sunnyvale. In 2019, it paid $237.4 million for Plaza del Rey, an 800-space park in the same city.
At the same time, Chicago-based real estate investor Samuel Zell paid $12.3 million for Sunshadow, a 121-unit mobile home community in San Jose.
In September, a group led by Kenneth Miller, an Aptos-based real estate investor and founder of two robotics firms, leased the land beneath the Silicon Valley Village Mobile Home Park in South San Jose. A deal ensured it would remain a park and that 1,600 residents wouldn’t face evictions.