SACRAMENTO RIVER DELTA KOA$1,200,000 Sales Price135 RV Sites12 Park Model Cabins15.91 Acres on the DeltaClubhouse, Pool, StoreOnly $8,889 Per Site
For Further Information Contact:John Grant/Park Brokerage Inc.11510 Caminito Garcia, San Diego, CA 92131
(858) 586-9400Fax (858) 430-3401
Email: [email protected]
Information contained herein has been obtained from the owner of the property or from other sources that we deem reliable.
RV ResortFor Sale
139 RV Sites on the DeltaOnly $8,888 Per Site‐Great Opportunity
Sacramento River/Delta KOA139 RV Sites, 12 Park Model Cabins, Pool, Clubhouse, Store, Tennis Courts
Down Payment$480,000
LOAN INFORMATION:Buyer to assume existing loan of $720,000 at 7%interest fully amortized and paid to September/2028.Monthly payment $7,198.13 with $3,000.00 toprincipal.
DESCRIPTION AND TENANT INFORMATION: Great opportunity to buy KOA RV resort far below replacementcost with great upside. 135 RV sites with 12 popular park model cabins and 123 full hookup RV sites with 8 pull thrusites. Rental rates are RV $35 daily and $600 monthly, two deluxe cabins $120 and regular cabins $85, and RV storage$50. Amenities include a clubhouse/general store/laundry/restrooms building of 3,150 square feet, swimming pool, twotennis courts, dog park, wifi, six 50 amp electric sites, 72 RV storage spaces, mature shade trees for all sites, and theDelta Bay Marina across the street. You can get more information on the RV resort at www.koa.comSeller use to be in the membership RV park business and purchased the park as an overflow RV park for his members.Then after getting out of the membership RV business, he converted to KOA but then corporate KOA bought the largestRV park and marina on the Delta. The KOA franchise can be terminated at any time. 2014 occupancy rate very low at17% for the RV sites and 14% for the park model cabins. Most Delta RV resorts are at 40%-60% occupancy. RV resortin 2008 had almost double the income from 2014 (before KOA corporate bought the nearby RV resort). Anowner/operator could get rid of most of the $70,000 in payroll and the $24,187 in KOA franchise expense and havestrong cash flow even with the very low 2014 gross income. A targeted internet marketing campaign withwww.reachlocal.com would increase occupancy rates A still below market 30% occupancy rate for the RV sites and parkmodel cabins plus 10 sites to Monthlies gets to an off the chart 20% cap rate (see Broker Proforma attached).Owner will also sell the 150 slip Delta Bay Marina across the street from the RV resort for $2,300,000 with an existingloan of $1,500,000. www.sacdeltabaymarina.com
CountySacramento
StateCalifornia
Est. Vac. & Expense %See 10 Years Attached
AgeBuilt 1989
LoanAssumable
Total Parcel Size 15.91 Acres
No. Spaces135
WaterWell
SewerSeptic
Listing Salesman John Grant (858) 586-9400 Price Per Site: $8,889
OWNER/OPERATOR NET INCOME $241,357
TOTAL ANNUAL PRIN. & INTEREST PAYMENT $86,378
EST. ANNUAL PRE‐TAX CASH FLOW (SPENDABLE) $154,979
PLUS PRINCIPAL REDUCTION YEAR 1 $36,000
TOTAL RETURN $190,979
Address/City922 W. Brannon Island, Isleton
Capitalization Rate20%
Est. Spendable Return32.2%
Total Return 40.0%
Price$1,200,000
SACRAMENTO RIVER/DELTA KOA
ACTUAL Year End
2013
ACTUAL Year End
2014Broker's Proforma
REVENUE
Laundry 0 157 1,000
Over/Under 25 -14 0
Storage 6,725 5,105 8,000
Propane Sales 3,901 2,579 5,000
Store 4,247 1,636 5,000
Daily RV 110,078 111,986 471,398 ←
Deposits Forfeited 1,088 2,904 2,904
Park Model Cabins 47,211 55,641 118,260 ←
Discounts -15,718 -16,788 -40,000
Marina Income 490 -797 -797
Monthly 81,153 72,821 72,821 ←
Rental-Other 2,232 2,757 2,757
TOTAL REVENUE 241,432 237,987 646,343
EXPENSES
Cost of Goods Sold 3,574 2,289 5,000
Advertising/Marketing 487 803 2,000
Bank Service Charges 7,708 6,124 15,000
Insurance 9,626 10,355 10,355
KOA Franchise Fees 24,203 24,187 60,000Licenses & Permits 1,563 3,265 3,265
Payroll 55,013 68,943 100,000
Payroll-WC Insurance 9,197 4,949 10,000
Professional Fees 1,500 5,500 5,500Repairs & Maintenance 33,071 35,914 40,000 ←
Supplies 3,362 1,899 10,000
Taxes-Property 22,406 11,635 14,000
Taxes-State 800 1,700 1,700
Telephone 7,545 7,986 7,986
Utilities 57,445 66,110 120,000
TOTAL EXPENSES 237,500 251,659 404,806
NET INCOME 3,932 -13,672 241,537
123 RV sites X $35 X 30% Occupancy Rate
12 Park Model Cabins X $90 X 30% Occupancy
123 RV Sites X $35 X 30% Occupancy Rate
Equals only 10 sites. At one time the resort had 23 Monthlies. Seller has waiting list for Monthlies for 50 amp sites and is currently upgrading some of the 30 amp sites to 50 amps.
$8,000 in Capex in 13 and $8,000 in Loan Fees in 14
Broker has increased most expense amounts with estimates for increased occupancy
Even with the very low 2014 occupancy and income, an owner operator could achieve an almost 10% cap rate having their family handle the payroll and without the KOA franchise fees.
Contact Us
The California Delta is located roughly between Sacramento on the north and Stockton on the
south and encompasses about 1,000 miles of waterways. The main contributing rivers are the
Sacramento River, coming in from the north, and the San Joaquin River, coming in from the south.
Other rivers feeding into the two major rivers include the American River, the Mokelumne River, the
Cosumnes River and the Calaveras River. Before these rivers empty into the Pacific Ocean
through the San Francisco Bay, they pass through some of the best boating waterways in the
country. The California Delta is a labyrinth of sloughs with names like Potato Slough, Whites
Slough, Snodgrass Slough, Lost Slough, Georgiana Slough, Steamboat Slough, and many, many
more. As one explores these watery avenues, vistas of vine-covered trees, blackberry brambles,
and tule grasses appear at almost every turn. There is abundant wildlife, including the great blue
heron, egrets, ducks, geese, and, of course, fish. The California Delta truly is a boater's and
fisherman's paradise.
Along the way, you'll pass through small towns such as Courtland, Locke, Walnut Grove, Isleton
and Rio Vista, to name a few. Courtland is famous for its annual Pear Fair, held on the last Sunday
of July every year. The town of Locke celebrates Asian Pacific Heritage Month in May, hosting a
weekend party for the public with Lion dances, martial arts demonstrations and more. Isleton hosts
the Isleton Cajun Festival (formerly the Crawdad Festival) on Father's Day weekend, and Rio Vista
hosts the Bass Festival in October, celebrating the abundant fishing in the California Delta.
Whether by boat or by car, there is plenty to do for all, so come on out and enjoy!
Map and Info Regarding Emergency Drought Barrier on False River
Map of the California Delta
About the California Delta http://deltaboating.com/about.htm
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