California group pays $17.7M for mobile-home park in Loveland

LOVELAND — A group of investors based in California has acquired the Sunset Mobile Home Park in Loveland for $17.7 million.

The upscale park is located east of Madison Avenue and south of U.S. Highway 34 behind businesses that front the highway. It has approximately 165 mobile homes that are skirted with their wheels removed. It is restricted to tenants 55 and older.

Sacramento, Calif.-based FolletUSA created the entity Colonial Investors LLC to purchase the 24-acre park from Sunset Colorado LLC, an investment group based in Newport Beach, Calif.

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FolletUSA purchased the land, infrastructure, streets and common areas. It leases space to individuals who own their homes in the park, said Andy Kotowicz, FolletUSA’s vice president of acquisitions.

Sunset Colorado LLC had bought the park in 2010 for $10 million from DH Developments LLC, according to public records. Kotowicz said when Sunset Colorado bought the park rents were lower, and the park needed improvements. “What we bought was a turn-key property free of deferred maintenance,” he said.

FolletUSA owns 26 of these type of communities in 10 states. Kotowicz said the investors are “bullish on this part of the country. … The I-25 corridor from Denver to Fort Collins.”

Kotowicz said the local real estate market is performing well, and that these types of communities are in short supply and high demand.

“They perform well with high occupancies. There are few being built.” He said the Sunset Mobile Home Park is 100 percent occupied.