Shopoff Realty Investments is moving into a differing type of residential development – manufactured houses, or mobile homes.
The Irvine-based real estate firm acquired a 45.9-acre mobile home community in El Monte for approximately $52.7 million, The Real Deal has learned.
The complex, at 12700 Elliott Avenue, comprises 421 homes with an estimated 64 percent occupancy rate, according to Shopoff.
CEO William Shopoff said the company acquired the land and the license to operate the park, which were under separate ownership.
“This was running at 65 percent so we saw significant upside in combining the land and the leasehold,” Shopoff told The Real Deal. “This piece of property hadn’t changed hands since the 1930s.”
Shopoff said he believes he can bring the occupancy rate up to about 98 percent. The company plans to add an additional 150 homes to the site as well as upgrading the existing common areas and adding solar panels and individualized water meters.
The deal was the first manufactured home purchase for Shopoff Realty, which typically focuses on commercial properties and entitlement of land assets.
“It’s a little bit of a deviation from what we normally do, but we saw this as an incredible play,” Shopoff said.
Ladder Capital served as a lender and equity partner in the deal.
Shopoff sold an 18-acre plot in Inglewood to Harridge Development Group earlier this month for roughly $36.3 million, TRD reported.