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This is what optionality looks like in RV park investing.
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2/ Highway frontage on the edge of a desirable, mid-sized city. Three small commercial tenants on the frontage.
150 RV sites set back off the frontage. Pre-approved expansion for 122 additional sites.
City utilities, tight RV park supply, site rents below market, all good.
150 RV sites set back off the frontage. Pre-approved expansion for 122 additional sites.
City utilities, tight RV park supply, site rents below market, all good.
3/ Some of the options: improve the commercial frontage/leases, sell the frontage to reduce cost basis, expand the RV park, add amenities, raise the rents, sell the park and keep the frontage, build a different product (storage, retail, etc), and more.
4/ Ideally, pay a fair price or less for ALL of it based on in-place NOI at the RV park. Get the upside & optionality for “free.”
If bought well, the options are great for managing risk and forcing appreciation.
Deals rarely go as planned and one like this can be resilient.
If bought well, the options are great for managing risk and forcing appreciation.
Deals rarely go as planned and one like this can be resilient.
