Property Description

Midway RV Park, built in 2013, is a 65-site RV Park located in Big Spring, Texas. The property is approximately six miles south of Interstate 20, a major east-west U.S. corridor and the busiest highway through the Permian Basin. The park operates on city water and a septic sewer system.

The Big Spring economy is heavily influenced by all the activity in the Permian Basin. The Permian Basin is the world’s second largest natural gas and oil shale currently with 437 of the United States’ 958 total rigs. “Exxon Mobil will triple production in the Permian Basin, the hottest US shale oil field, by 2025…Last year, Exxon doubled its Permian holdings through the $5.6 billion acquisition of companies owned by the Bass family.” “Chevron and its legacy companies have been a fixture in the Permian…since the early 1920s…and with approximately 2 million net acres of resources, Chevron is the Permian Basin’s largest net acreage holder.” Delek US Holdings recently bought the Big Spring 73,000 barrels per day refinery from Alon which sits on the north side of Interstate 20 in Big Spring. Kinder Morgan CO2 owns the Wink Pipeline, a 450-mile Texas intrastate crude oil pipeline system consisting of three mainline sections, two gathering systems and numerous truck delivery stations, which contributes positively to Big Spring’s workforce. The Federal Correctional Institution, Big Spring is a low-security US federal prison for male inmates and houses 1,709 inmates. This facility's employee base, along with the George H. O’Brien Jr. VA Medical Center’s employee base in Big Spring contribute a consistent and stable number of residents to the parks that are not oilfield related.

Midway RV Park is being offered at a day one cap rate of 15.05 percent and a pro forma cap rate of 18.60 percent. The park is currently managed by an individual who lives onsite and is open to staying onboard for a future owner. The park also has bathrooms, showers, and a laundry facility. This asset presents a high yielding opportunity in a strong economic area of the country.