Tag Archives: Quartzsite

RV

Black Rock RV Resort sells for nearly $4M

The sale of the Black Rock RV Village located at 46751 E. Highway 60 in Brenda, AZ (near Quartzsite) sold April 2, 2015 for $3,925,000 to a California private investment firm.  John Grant and John Sheedy with Park Brokerage Inc. represented the buyer and the seller on the transaction.

43b3e660-4eb2-4484-b070-da06d4e5857aBlack Rock is a winter, snowbird RV resort 15 miles east of Quartzsite which is a marketthat attracts over one million RVers every winter season.  Black Rock has 403 large RV sites of 40X50 feet to 40X100 feet with 26 pull thrus at 30X100 feet on 47 acres.  Additional revenue streams are from five motel units, leased beauty shop, five vendor booths, propane sales, and car wash.  The property’s utilities are 50 amp electric, well water, and septic sewer.  The resort has gravel streets.  Amenities include a 150 seat café leased to an operator, newer swimming pool, spa and bathrooms facility built in 2008, rec hall with a large stage and bathrooms, a smaller rec hall with a library, modem desk, kitchen and card room, a picnic area in the center of the park with cabana, large vehicle storage area, office, laundry, and a manufactured home used as a third meeting room.  The resort has a Good Sam rating of 10/10/9.5.

The resort has over 250 annuals with approximately 125 of the annuals being park models at annual rental rates of $1,695-$1,895.  Overnight rates are $31-$34, weekly $195-$230, and monthly $420.

The capitalization rate was 10.0%.  The buyer obtained new financing of $2,551,250 or 65% loan to value at a fixed interest rate of 4½% for ten years with monthly payments amortized over 25 years.  The property was in good condition at time of sale.

John Sheedy commented, “The greater Quartzsite market is a huge snowbird destination and in January of each year becomes the second largest city in Arizona.  Brenda has a strong attraction to snowbirds for access to Quartzsite, off road quad activity right outside the resort, and reasonable rental rates”.

John Grant added, “The private buyer is an experienced real estate investor but new to the RV resort industry.  The RV industry is seeing more and more new investors in the market attracted by yield.  Most apartments and commercial properties are selling at 4%-5% capitalization rates and they were able to obtain a 10% cap rate with 4.5% financed for very positive leverage at 16% cash flow plus principal reduction”.

Solar_Power

3 renewable energy projects approved

The Interior Department has approved three renewable energy projects in Nevada and Arizona that officials say will generate enough electricity to power nearly 200,000 homes. The projects are the first renewable energy projects on public lands approved by Interior Secretary Sally Jewell since she took office in April.

The projects will deliver a combined 520 megawatts to the electricity grid through solar plants in Nevada and Arizona and a geothermal plant in Nevada.

The 350-megawatt Midland Solar Energy Project is near Boulder City, Nev., while the 100-megawatt Quartzsite solar project is near Quartzsite. The 70-megawatt New York Canyon Geothermal Project is in Pershing County near Lovelock, Nev.

Interior has approved 45 utility-scale renewable energy projects since 2009, including 25 solar sites, 9 wind farms and 11 geothermal plants.