Tommy Dobczyk analyzes a $250 million coastal mobile home park deal and finds it doesn't work. Comparable sales show $1,000-$1,200 per square foot, but the deal assumes $25,000-$30,000 per foot to justify the price. The projected gross proceeds of $158 million fall short of the $185 million total cost.
Chapters
Right here, it says I dug through it all in all, the $250 million does not pencil, does not pencil on third sold coastal mobile home park comps unless you achieve Malibu all-time pricing well above the most of the, most of the sold samples. So like Tommy, it says here sold in 2012 in Malibu sold for $1.9 million. Thank you, Mark. They put space, not one, and say sold for $2 million. $17 per foot. And so these houses are selling for about $1,000 per foot. So it ranges from $1,000 to $1,200, right along the coast. I don't know where we were finding the ones that were at $3,000 per foot. Maybe it's just one of them, but that's what we need to find. So keep going down. So selling them at the gross sellout, we're looking at $158 million. So that's why it says it doesn't pencil, even if we sold them all at that price. There's no, there's no way that that's a safe return. So until we find those ones where they were selling them for $25,000, $30,000 a foot, that's where you're at. Now, if you can get it down lower than that, absolutely. We get it. We get the property for $65 million. We build all the houses for $120 million. We're at $185 million. It works there. So, but keep playing with it, Katja. Find those other comps, right? Make it make sense then. Go look at the comps where they're talking about right now. And if they're comps, then they're comps. You can't get around it. Okay.
