Malibu luxury trailer park sold for $200 million, largest transaction of its kind ever
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Mobile home communities, also colloquially known as trailer parks, have been stereotyped in pop culture for decades as symbols of rural poverty. But everything is different in Malibu, California. This seaside paradise has become synonymous with the good life and is also home to Point Dume Club, a luxury trailer park. The Point Dume Club was so great that it reportedly sold for $200 million.
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The deal, first reported by the Los Angeles Times, is the most expensive mobile home acquisition in history. The final price was not disclosed, but anonymous sources confirmed to the Times that it was in the $200 million range. If you’re lucky enough to visit Point Dume Club, you’ll quickly understand why the prices were so high. Any stereotypes you have about living in a mobile home community will disappear.
Point Dume Club sits on a 95.4-acre parcel overlooking the Pacific Ocean, making it Malibu’s largest privately owned waterfront property. The club was built in 1969 by the Rindge family, who have owned land in Malibu since the 1880s. In addition to stunning views stretching from Point Dume to the Palos Verdes Peninsula, the Point Dume Club offers a wealth of amenities.
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Residents have access to a heated pool, basketball court, tennis court, library, clubhouse, and car wash. Many of the mobile homes at Point Dume Club have been converted into luxury accommodations with wood floors, gourmet kitchens, and huge private decks. Although it was an affordable option for moving to Malibu in 1969, the rapid rise in Malibu real estate prices benefited Point Dume Club property owners.
The average price for a mobile home in Point Dume Club over the past two years has been about $2 million, said Dustin Wilmer of Marcus & Millichap Brokerage, who represented the seller in the transaction. But he points out that prime units at Pointe Dume Club sell for up to $5.6 million. It’s a considerable amount of money, but it’s all you can pay for the mobile home.
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Point Dume Club residents still pay to rent the land beneath their mobile homes. This explains why mobile home parks are popular with real estate investment trusts (REITs) and individual investors. They provide passive income to the owner, but require relatively low maintenance and there is no limit to the increase in the lease value of the land. The buyers from Chicago-based Hometown America Communities were thrilled to complete the transaction.
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In a statement confirming the purchase, HomeTown said, “We are excited to add Pointe Dume to our community in California. Pointe Dume is a beautiful piece of real estate that will be renovated in the same way as its previous owners. “I’m going to manage it. I want to pay homage to the present.” Hometown is a long-term investor, focused on the long-term viability of its markets and communities. ”
It remains to be seen how long this situation will last. By most estimates, the $200 million sale price is far below the potential value of the land if Hometown America Communities redevelops it. But the California Coastal Commission and Malibu city government have a big say in land development. Until then, it appears to be business as usual at the world’s most expensive mobile home park.
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This article: Malibu luxury trailer park sells for $200 million in biggest deal ever
