I’m looking at a deal that is priced favorably, but the utilities are city water and a treatment plant. I understand the risks and due diligence items related to treatment plants because I currently own a park with a treatment plant so I have gone through that analysis.
My questions is more what the exit looks like for an owner trying to sell a park with a treatment plant. Is the pool of buyers really that much smaller? Was it difficult to sell the park? Anything to know when marketing a park with a treatment plant?
Thanks for your insight.
I think your best bet is to call up brokers and ask them how large their bid sheet might be for a property like this. There are many factors at play and they are in the market daily.
We have owned and operated a park with a packaged plant (personally operated it) and fortunately the buyers were trying to put at least 6 other parks together and thus the sale was not problematic. We presently will never buy another park with such since the EPA standards continually change, equipment needing constant attention, and some just obsolete… The buyer pool is defiantly smaller and as such the cap rate can be less. As a side note we are operating RV parks and looking to buy more since we NEVER have to bring in new or used units and stay Full (no rental units)—have also owned and operated MH parks and like RV parks better and are seeing 5 caps in sales with RV parks