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Local firm busy in limited mobile home park market

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Kleege Enterprises, which already purchased the 124-space Cabrillo Motor Lodge in Chula Vista for $6.85 million last May, added three more Chula Vista mobile home parks to the company’s portfolio at the end of 2012.

San Diego-based Kleege acquired the 194-space Terry’s Mobile Home Park, a seniors’ park on a 15.48 acre parcel at 677 G St. for $14.6 million. The park consists of 160 double-wide spaces and 34 single-wide spaces.

Terry Enterprises LLC was the seller of the property. Rob Morgan and Victor Krebs of Colliers International arranged the sale.

The company, headed by R. Bruce Brenda Kleege, took out a $10.95 million Union Bank loan to purchase the property.

The 162-space Chula Vista Mobile Home Park at 345 C St. was also purchased by Kleege for $11.5 million as the year was drawing to a close. The park is situated on 12.3 acres, two blocks south of state Route 54, and consists of 79 double-wide and 83 single-wide spaces.

The Chula Vista Mobile Home Park acquisition was part of a 1031 exchange that also included the 138-unit Quail Run apartments in Ramona, for $15 million, that went to the Conrad Prebys Trust.

Norm Sangalang and Vince Reynolds, of the CBRE National Manufactured Housing Group, arranged the sale.

The third park purchased by Kleege last year -- this time in conjunction with GCP Holdings LLC -- is the 71-space Broadway Mobile Home Park at 350 Broadway in Chula Vista. The park, situated on a 3.18-acre parcel, was also acquired from Terry Enterprises for $2,975,000. Rob Morgan and Victor Krebs, of Colliers International, arranged that sale.

“Mobile home parks are fairly decent investments and they don’t sell that often,” said Anna Roppo, a partner with the law firm of Duckor Spradling Metzger & Wynn.

Weston Doyle, Kleege vice president and managing director, said there are no major upgrades planned for the parks.

He said work, such as improvements to the clubhouses and landscaping, will be made as needed.

Doyle said two of the parks -- Terry’s Mobile Home Park and the Chula Vista Mobile Home Park -- are subject to rent control, but market rate space rents may be charged to new residents.

Doyle said Kleege owns more than 10 mobile home parks both in and outside of San Diego County, grocery-anchored shopping centers, multifamily homes, single-family homes and hospitality properties.

Other than the Kleege transactions, The CoStar Group (Nasdaq: CSGP) hasn’t noted any major "arms-length" mobile home park sales in the county or southwest Riverside County since August.

In August, a partnership controlled by Orange County investor Lee Kort paid $12.5 million for the 112-space Rancho La Vista mobile home Park in Lakeside.

The remaining mobile home park sales that were listed by CoStar or The Daily Transcript last year were either fewer than 35 spaces, or they were non-arms length transactions.

Previously, in December 2011, a Follett Investment Properties unit paid $7.15 million for the 105-space Bayside Palms Mobilehome Village on Palm Avenue in South San Diego.

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