OKC real estate: Mobile home parks selling despite interest rates – Oklahoman.com

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It was the biggest mobile home park portfolio sale ever in Oklahoma, and it “never should have happened,” the broker said, with loan interest rates so high.

But it did because the buyers were “hungry” to increase their position in the metro area, so they bought one park in Norman and two in El Reno. The portfolio price: $21,477,000, in a transaction by OKC brokerage Keith Wilson Co.

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The sale included 356 sites, 277 for mobile homes and 79 for RVs, and 136 mobile homes, 54 built since 2019-23, “which is very new for the Oklahoma market,” Wilson said. Half of the park-owned homes are rent-to-owns and half are rentals, he said.

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OKC-area mobile home parks sold despite high interest rates

A view of Skyview Estates, 1644 E Highway 66 in El Reno, was one of a portfolio of mobile home parks sold in a $21.47 million transaction by Keith Wilson Co.

“I sold this portfolio to these Connecticut sellers in 2018 for $12,700,000. California buyers were looking to scale (up) in OKC/Tulsa and saw these as that opportunity, albeit in a generally difficult market due to higher interest rates,” said Wilson, a longtime specialist in mobile home park sales.

Wilson said that owner-investors in mobile parks are as “trapped” as single-family homeowners with low-interest mortgages reluctant to move and take on a higher-interest loan.

“As lower-interest loans mature, the mobile home park owner will be forced to either refinance at much higher rates or sell to a buyer that will have to borrow at much higher rates and expect a discounted price to do so. Those owners with considerable time left on their lower-interest financing are simply staying put,” he said.

However, the buyers of this portfolio, determined to invest in Oklahoma, “committed a large amount of capital, expecting to refi at lower rates, in the hopefully not-so-distant future,” he said.

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These three Oklahoma mobile home parks sold in the biggest portfolio sale ever in the state, the broker says

A home at Sunnylane Estates, 17200 S Sunnylane Road in Norman, was one of a portfolio of mobile home parks sold in a $21.47 million transaction by Keith Wilson Co.

Higher interest rates have slammed mobile home park sales just as they have other real estate sales, Wilson said.

“Historically, when interest rates increase this rapidly, there is a lag time before sellers accept the new reality and prices begin to come down. That has not significantly happened yet,” he said.

The parks sold were:

  • Sunnylane Estates, 17200 S Sunnylane Road, Norman: 47.1 acres, 102 sites (91 mobile homes, 11 RVs), site rent $480 per month. 
  • El Reno Estates, 1501 S Rock Island Ave., El Reno: 23 acres, 165 sites (104 mobile homes, 61 RVs), site rent $460 per month. 
  • Skyview Estates, 1644 E Highway 66, El Reno: 15 acres, 89 sites (82 mobile homes, seven RVs), site rent $460 per month.

Price Edwards & Co. reports these commercial real estate transactions in the Oklahoma City area

  • Valencia Shops Baceline LLC paid 178th Penn LLC $4,050,000 for a 19,925-square-foot retail property, Shops At Valencia, at 2012 NW 178. George Williams and Paul Ravencraft handled the transaction. 
  • Adam & Paul LLC paid London Investments LLC $1,078,000 for a 10,500-square-foot industrial property at 4935 Bishop Drive. Cody Beat handled the transaction. 
  • Big Land Holding Co. LLC paid Oklahoma District Council of the Assemblies of God Inc. $550,000 for 10 acres on the 2600 block of SW 15. Cordell Brown handled the transaction. 
  • Sunnylane RE LLC leased 20,220 square feet of industrial space at 6820 S Sunnylane Road. Cody Beat and Mark Patton handled the transaction. 
  • Safety National Casualty Corp. leased 16,210 square feet of office space in the IBC Center at 3817 Northwest Expressway. Craig Tucker handled the transaction. 
  • Johnson & Johnson Inc. leased 4,754 square feet of office space in the IBC Center. Tucker handled the transaction. 
  • Stewart Title leased 5,933 square feet of office space in the Buick Building at 1101 N Broadway Ave. Allison Barta Bailey handled the transaction. 
  • Oklahoma State Election Board leased 5,692 square feet of office space at 3017 N Stiles Ave., Oklahoma City. Tre Dupuy and Ian Self handled the transaction. 

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Senior Business Writer Richard Mize has covered housing, construction, commercial real estate and related topics for the newspaper and Oklahoman.com since 1999. Contact him at [email protected]. Sign up for his weekly newsletter, Real Estate with Richard Mize. You can support Richard’s work, and that of his colleagues, by purchasing a digital subscription to The Oklahoman. Right now, you can get 6 months of subscriber-only access for $1.

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