LOS ANGELES, CALIFORNIA – Quest Realty Group, Inc. (“QRG”) is pleased to announce the recent sale of Casa Del Sol RV Resort (“Casa”) at 2750 W Acacia Ave, Hemet, California. Casa Del Sol is a 358 site, 3+ star, all-age RV community located in Hemet in a prime center city location off Highway 74. Casa Del Sol Investors Group, LLC, a Quest Realty Group investment company, purchased the property in 2010 and sold the investment for $8,800,000 in April 2019. ($8,000,000 real estate purchase price with a park-owned home/note portfolio valued at $800,000.
Situated on 18.72 acres, the park features many long-term park model homes and permanent RV’s, and strong transient business. The community features an upscale amenity package including a heated swimming pool, indoor spa, pickle ball court, library and lounge, card and billiards room, golf driving range and putting green, indoor shuffle board, exercise room, pool room, restrooms, fenced dog run, picnic area with barbecues, horseshoe court, computer room, large laundry facility and a 4,100 SF recreation room comprised of a ballroom/dining room with a kitchen facility.
The QRG strategy was to add value by hiring management with experience in this specialized asset type. Led by a new onsite manager with an extensive background in incubation management and manufactured home sales, QRG’s aggressive onsite incubation team began setting up park model resales around the community by combining two sites to create premium setup for the park models. With all of their utility hookups in place, 351 merged sites could now be re-positioned as standalone RV sites in the future. As a result of the “site merging strategy” the onsite team began selling these park models at $20,000 to $60,000 all cash and with seller financing with site rates from $529-$679 on leases.
QRG President and manager of Casa Del Sol Investors Group, Ken Leon, explained by pricing the asset to sell in today’s scarce market, they were able to attract experienced RV Park investors which resulted in a successful close. The capitalization rate from the combined streams of revenue is greater or on par with market interest rates and the asset is priced at a combined CAP of 7.44% on the combined price of $7,999,500 with a 54% expense load ($1,962 per site). “Prime location and high quality of the asset and service provided will continue to draw residents for both annual and seasonal use” Ken added, “current financial benefits of the future rental upside give this community strong appeal to both the conservative and aggressive RV operators.”
Quest Realty Group, Inc. is a real estate investment and asset management company based in the San Fernando Valley in CA. President and founder, Ken Leon, oversees operations, acquisitions, dispositions and corporate business development Mr. Leon began his real estate career on the court house steps buying foreclosures at auction in the mid-1990’s and has since made his mark in the industry by specializing in mismanaged or under- utilized properties. His real estate savvy combined experience in property management, construction management and real estate finance have been instrumental in Quest Realty Group success acquiring and remodeling/developing over 1,000 multi-family units, 10 commercial properties, and six ground-up development projects. The investment group has transacted over $260 million worth of real estate and currently has a portfolio over $350 million including 500 apartments, retail and office properties in Southern California, Nevada, Pennsylvania, and Florida.