Is The Most Expensive Mobile Home Park Ever Sold A Brilliant Moneymaking Investment?

Malibu, CA is known for its 21 miles of coastline studded with luxury homes. Carbon Beach, also known as Billionaire’s Beach, features homes belonging to industry titans like Larry Ellison and David Geffen. However, the city also has another type of housing in high demand: mobile homes. 

There are two mobile home communities in Malibu. Paradise Cove has attracted celebrities like Matthew McConaughey and Sarah Paulson to its private community. The other mobile home club is the Point Dume Club of Malibu. It has 297 residences within its gates and just sold for the first time since the land beneath it was bought in 1892. 

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The Rindge family owned the land, buying thousands of acres in the 1890s. The Point Dume Club was built in 1969 by members of the Rindge family. By then, the area was well-known as a celebrity retreat and the favored hangout of Southern California’s growing surf community. 

Point Dume Club is on 95.4 acres of prime land along Point Dume, jutting into the Pacific Ocean. It is the largest privately owned piece of oceanfront land in Malibu. The new owner is Hometown America Communities, which owns 80 communities in 12 states. In a statement, the company emphasized that it is a long-term investor that plans to “manage it in the same manner as the prior owners, honor current leases and comply with all local regulations.”

The price was not disclosed but according to the LA Times, it sold for around $200 million, which is a bit of a deal given the value of the land. Real estate broker Dustin B. Wilmer of Marcus & Millichap, who represented the seller, said it sold for the highest price per site achieved by a manufactured housing community.

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The community is no ordinary mobile home park. Current listings for properties in the community run as high as $2.97 million. Owners only buy the mobile home and lease their land plots from the owner. Prices for monthly dues can be several thousand dollars depending on the property. The association also has a basketball, clubhouse, pool, spa and tennis courts. 

While Point Dume Club is a bit of an outlier, mobile home communities are finding new favor among retirees and losing some of the negativity previously associated with these types of communities. Because getting a new community approved can often be challenging, existing properties are highly desirable. Communities can be solid moneymakers for investors because tenants rarely pick up and move their homes so vacancies are low. 

"Some of the most profitable investments are in industries where demand is outpacing supply," Kristin Millington, director of manufactured housing and self-storage at Dallas-based Crow Holdings Capital, told Bisnow earlier this year. "That's the exact dynamic we see present in the manufactured housing space and we don't really see that changing." 

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