Do parks sold as a portfolio bring a higher price?

I am debating whether or not to lump 3 or 4 parks together and market them as a portfolio sale. I get the impression from attending some of the shows and talking with brokers that I might get a better cap rate by selling them as a group. Each park is around 100 spaces, so it would be between 450 and 500 pads. Of course I have to weigh the tax consequences of having all that capital gain in the same year vs selling off one park per year. Any thoughts on the portfolio idea (or the tax issue as well).


Yes, parks sold as a larger group generally do command higher prices because they are more financeable and appeal to larger institutional acquirers (especially if they are close to one another and dominate a market).

As regards your tax issues:

  1. An installment sale will help lower your taxes

  2. Selling one or more parks on a lease-option will get you cash up front and ‘tax free’ until the option is exercised by the buyer some years down the road

  3. Doing a 1031 exchange completely eliminates your tax liability