Tommy Dobczyk analyzes a $60 million, 19-acre beachfront property as either a mobile-home park or luxury development. The math suggests a $75 million total cost and $7,200 monthly lot-rent needed to break even in five years, though Santa Monica comparables run $3,500 to $4,000 per month.
Chapters
Are you in the deal room? Understand they want to get $60 million for this property. So let's do some— let's do some quick computation on that. Based on what was there previously, are we able to see how many units were there previously? And then if we know how many units were there, can we split that up and figure out what it would be if we wanted? What would the lot rent be per mobile home if we actually paid $60 million for the dirt? And then just say we spent 25% on homes and, and infrastructure and, and everything else to be upgraded to become a brand new mobile home park, what would we need to charge to recoup our expenses and costs within the 5-year time period? And that's going to tell you how much lot rent would be there.
Land Shark also said the best route for this would be like a small community of multi-million dollar homes, but still like $60 million.
Okay, but it's, it's a 19-acre property, right?
Yeah, 19.
That's 4— that's 4 luxury homes. And it's not all buildable. Like, the full 19 acres is not buildable. Yeah, but again, like, that's not a full 19 acres. So I'm curious as to what's buildable. So all in, $75 million, right? That would be approximately per former space, $433,000. So your, your per month lot rent is gonna be $7,200 a month for lot rent.
They're luxury mobile homes. It was by the beach. I know there's some out in like Santa Monica that are like $3,500, $4,000 because they're by the beach. For a lot, right? A lot, yeah. A lot of celebrities have homes there and they're like $2-3 million for a mobile home that's 1970.
Are you serious? Maybe we're not too far off, Tommy.
