As the need for quality, affordable housing is increasingly recognized across South Florida, Colliers International South Florida has brokered a $6.25 million purchase of prime mobile home property at Palm Lakes Trailer Park on behalf of buyer Steve Schneider. Totaling 120 mobile home pads on approximately 7 acres of land, the property was sold by three joint owners.
Located at 7600 NW 27th Avenue, Palm Lakes Trailer Park sits within the recently-enacted NCUAD zoning overlay which permits high-density residential and mixed-use development. It is within close proximity to the Northside Metro Rail Station as well as major retail.
“Large tracts of developable land with stable income in place are hard to come by,” said Colliers Senior Broker Associate Michael Lewin, who represented the buyer along with collegue Kevin Morris. “Based on the strong cash flow and attractive cap rate compared to other, more conventional assets, this property was the perfect fit for our client who was looking to fulfill a 1031 exchange requirement.”
Additionally, the new owner brings experience in affordable housing and property management, making the property a natural match for the time-sensitive transaction. A 1031 exchange allows investors to sell an asset and quickly reinvest the profit in another property to defer all capital-gain taxes.
“Affordable housing is an essential element in the continued growth of our economy, both nationally and here in Florida,” said Kevin Morris, Colliers Senior Vice President and one of the leaders of the firm’s Affordable Housing practice group. “Investors are recognizing that need and showing interest in the asset class as a result of attractive, risk-adjusted returns and upside opportunity.”
The deal also highlights investment interest in Miami moving inland, following a surge in population and job growth that extends statewide. In 2016, Florida’s population surged by 367,525 people to reach 20,612,439 million, the second largest gain after Texas and outpacing New York to become the third most populous state in the nation.