Prestigious Properties recently announced the acquisition of the mobile home parks in Central Alberta, including one in Eckville.
Announced by the company on July 6, Prestigious Properties has purchased the three locations, on in Eckville, Drayton Valley and Rocky Mountain House, for $6.3 million.
The money paid is said to be “well below appraised value” for the three properties.
Combined, the three parks offer over 160 pads for mobile homes.
Prestigious Properties is known for acquiring undervalued apartment building and mobile homes in Western Canada and managing them thereafter.
Mike Hammerlindl, vice president acquisitions of the Prestigious Properties Group, said real estate in Western Canada is in high demand.
“Existing mobile home parks provide excellent yield and can still be purchased well below replacement costs if one is a patient buyer,” said Hammerlindi, adding the company is very excited about the new purchase.
Prestigious Properties President Thomas Beyer says in the country’s current economical state reasonably priced rental properties are in demand.
“Renting is becoming the economic choice of many because owning a house doesn’t mean automatic equity accumulation anymore, because renting is usually far cheaper than owning and because the threat of rising interest rates remains with us,” said Beyer in a press release.
He adds many people are looking for reasonably prices, well situated and “impeccably maintained” properties for rent, which a mobile home community offers.
Hammerlindi said the purchase of pre-existing parks is present great opportunity for the company as there is a high occupancy rate, limited construction of new parks and will help to improve Alberta’s economy.
The company expects the new acquisition will yield both short and medium term rentals.
“This presents an enormous opportunity for investors who seek stable, long term investments with cash-flow and equity growth, whether the economy is strong or weak,” said Beyer.