Marcus & Millichap (NYSE: MMI), the Nation’s largest real estate investment services firm, has announced the sale of Peoria Mobile Estates, a quality senior (55+) manufactured housing community in Peoria, AZ, according to John Vorsheck, regional manager of the firm’s San Diego office. The asset sold for $7,350,000, with some additional consideration for a home note portfolio.

Briana Barbier, a senior associate investment specialist in Marcus & Millichap’s San Diego office and member of the firm’s National Manufactured Housing Communities Group, had the exclusive listing to market the property on behalf of the seller, a Canada-based partnership. The buyer, an Arizona-based company that owns and operates a dozen other manufactured housing communities, was also secured and represented by Briana Barbier. Donald Morrow, Regional Manager of the firm’s Phoenix office, provided local representation.

Located at 6942 West Olive Avenue, Peoria Mobile Estates is comprised of 125 spaces and a quality amenity package which includes a swimming pool, spa, clubhouse, laundry facilities, a tennis court, and showers/ restrooms. The property has been well maintained and was 92% occupied at the time of sale. The rents are below market, creating some upside for the buyer, in addition to the opportunity to fill the vacant spaces. 

According to Barbier, “the offering process garnered multiple offers, and the asset sold at full list price in less than a week. This speaks to the increased demand and intense competition for quality, sizable communities in 2014. Lack of inventory and the availability of attractive financing have created a unique opportunity for sellers to realize great prices for their properties in today’s marketplace.” At $58,800 per space, this sales price represents a 6.64% capitalization rate. The transaction closed in 68 days with new financing provided by FNMA.