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Robert Denninger

Marcus & Millichap

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Palms of Paradise RV Park

RV Park/Campground for Sale in Gardendale, Texas

15180 North Hollyhock Avenue
Gardendale, TX 79758

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Sale Price: $5,250,000

Contact Information

Robert Denninger
Marcus & Millichap
www.marcusmillichap.com

RV Park/Campground for Sale

Year Built: 2013
Number of RV Lots: 100
Average RV Lot Rent: 825
Size: 10 acre(s)
Cap Rate: 12.8%
Purchase Method: Cash
Status: Active
Property ID: 966380
Posted on: Jul 08, 2018
Updated on: Jul 08, 2018
Price: $5,250,000

Property Description

Palms of Paradise RV Park is the premier RV Park in the Midland Odessa area and is on a very aggressive upward income trajectory. Concrete throughout, and consisting of 100 total spaces (all are pull through), the park boasts impressively high rental rates relative to the rest of the RV market in the Permian Basin. Amenities include a clubhouse with cable, onsite showers, two laundry facilities, and a playground. There is space to build a swimming pool if a future owner would like to. The park leased it’s first space in May of 2013 and has had a consistent top-tier resident base.

Until recently, Palms of Paradise billed-back a significant portion of the electricity expense, but in early 2018 became an all-inclusive park, paying for all utilities. This was combined with an aggressive rent bump, with current rates of $750 per month for the 22 30-amp spaces and $825 per month for the 78 50-amp spaces. There is a current wait list of over 100 potential guests. The impact of these changes within operations has and will continue to push the net operating income of the park higher. There is a 5-foot difference in size between the 30 and 50-amp spaces. The landscaping is attractive at the park with grass year-round and palms trees throughout the property. The asset is on Gardendale City Water and a septic system that is in full compliance. The City of Gardendale is no longer offering water permits to future RV parks, creating a large barrier to entry for potential RV park developers as they will be forced to dig a well to build a park.

The sellers (and builders) of the park are avid RVer’s and wanted to create a top-grade park in the Permian Basin after staying in some nicer parks on the Texas coast. The have hosted many events for their residents including BBQ cookouts, game nights, pot lucks and holiday parties. They have accomplished their dream and are ready to move on to their next adventure.

The Permian Basin is the world’s second largest natural gas and oil shale. Palms of Paradise RV is in the heart of the action located between Midland to the southeast, Odessa to the southwest, and Andrews to the northwest. “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.”

Park Information

Year Built:2013
Size:10.0 acre(s)

Financial Information (Actual)

Gross Income$973,260
Operating Expense$301,109
Net Operating Income$672,151
Expense Ratio 30.9%
Debt Info

RV Space Information

Number of RV Lots:100
Average RV Lot Rent: $825

Utility Information

Water:City
Sewer:Septic

Amenities and Other

Laundromat: Yes
Club House: Yes
Manager Office: Yes
Bathhouse: Yes