The subject property is a 61 space mobile home park with 30 onsite storage units located in Lea County submarket of Hobbs, NM. Of the 61 spaces, 14 contain privately owned mobile homes and 3 contain privately owned RVs. These 17 lots pay space rent only. In addition to these 17 spaces, the park owns and leases 7 2-bedroom singlewides and 6 3-bedroom singlewides. There are 31 spaces empty for potential build out. The 61 spaces are individually metered. The park is on city water and sewer. Each space has a yard and parking for two vehicles. The park manager currently works in lieu of paying rent. He is a police officer and drives his patrol car to and from work.
Hobbs, NM is an old established oil town. The park is within a few miles from Home Depot and Staples. The growth in Hobbs, NM is extreme. For the last 1 1/2 years it has been very difficult to reserve a hotel room in any hotel in town. There is a new Federally funded Enrichment plant being built nearby. Because of this plant, which is going to take many more years to complete, there is a large demand for rental units in Hobbs city limits. Once the plant is complete, there will be a need for low cost housing for the employees who are employed by the plant.
The subject property owner is willing to continue, with the new owner, to complete the build out of the park. The owner has established relationships with several manufactures in order to purchase mobile homes directly from the manufacturer. In addition, the owner has relationships with contractors to facilitate the build out of the park.