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Address is 5700 Cedar Road Big Spring, TX 79720

Robert Denninger

Marcus & Millichap

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Suburban East RV Park

RV Park/Campground for Sale in Big Spring, Texas

5700 Cedar Road
Big Spring, TX 79720

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Sale Price: $2,995,000
 

Contact Information

Robert Denninger
Marcus & Millichap
www.marcusmillichap.com

RV Park/Campground for Sale

Year Built: 1968
Number of RV Lots: 86
Average RV Lot Rent: 550
Size: 14.6 acre(s)
Cap Rate: 10.5%
Purchase Method: New Loan
Status: Active
Property ID: 911311
Posted on: Mar 18, 2018
Updated on: Mar 19, 2018
Price: $2,995,000

Property Description

Suburban East RV Park is located directly on Interstate 20 in Big Spring, Texas and has over 800 feet of frontage along the major US 1,500 mile long east-west highway. According to TxDot, traffic counts on Interstate 20 through Big Spring are currently averaging over 20,000 per day. The asset consists of 86 RV spaces, 1 park model, 4 cabins, and a two-bedroom single family house. Suburban East is being offered at a day one capitalization rate of 10.54 percent, with substantial upside through adding additional RV spaces at the park (85+ potential) and increasing rental rates. Located in the heart of the Permian Basin, the world’s second largest oil and natural gas shale, this asset has historically high occupancy (at one time had no vacancy for five straight years) and often times offers no daily or weekly stays due to market demand. There has not been a rent increase for two years.

The asset consists of 5 parcels totaling 14.57 acres. Amenities at the park include a swimming pool (which is used heavily during warmer months and is a huge draw for residents), onsite laundry and shower facilities. The park has excellent signage with a lighted flashing sign that can’t be missed from the Interstate at all hours of the day. The Alon Big Spring Refinery is less than 2 miles west across Interstate 20 from the park and has a stable employee base of over 300 individuals and a throughput capacity of 73,000 barrels per day. Located less than 1 hours drive from Midland International Airport, Suburban East would allow any investor in the United States the opportunity to visit their property on a day trip.

The park pays for electricity, cable, and wireless internet, currently with no cap on electricity. Water is provided by a well, keeping total utility costs at a minimum. The sewer is operated through a septic system that is in good condition. The park has a track record of higher occupancy than its competition largely due to it’s visibility and easy access for recreational vehicles. The resident base is a healthy mix of long-term residents and workers.

As cap rate compression continues in all product types throughout the US, Suburban East RV Park will allow an investor the opportunity to reap strong returns day one with the potential for substantially larger gains.

Park Information

Year Built:1968
Size:14.6 acre(s)

Financial Information (Actual)

Gross Income$514,776
Operating Expense$199,096
Net Operating Income$315,680
Expense Ratio 38.7%
Debt Info

RV Space Information

Number of RV Lots:86
Average RV Lot Rent: $550

Utility Information

Water:Well
Sewer:Septic

Amenities and Other

Laundromat: Yes
Pool: Yes
Manager Office: Yes
Bathhouse: Yes
Wifi: Yes