Luxury Trailer Park In Malibu Sells for $200 Million In Largest Ever Transaction Of Its Kind
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Mobile home communities, which are also colloquially known as trailer parks, have been stereotyped in pop culture for decades as symbols of rural poverty. However, everything is different in Malibu, California. This seaside paradise has become synonymous with the good life and it even has a luxury trailer park, the Point Dume Club. The Point Dume Club is so nice that it reportedly sold for $200 million.
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The deal, first reported in the Los Angeles Times, is the most expensive mobile home acquisition in history. Although the final price was not disclosed, anonymous sources confirmed the $200 million range to the Times. If you are ever fortunate enough to visit the Point Dume Club, you will immediately understand why the price was so high. Every stereotype you may have about life in a mobile home community will vanish.
The Point Dume Club is perched on a 95.4-acre parcel overlooking the Pacific Ocean, making it Malibu’s largest privately owned oceanfront land. The club was built in 1969 by the Rindge Family, who have owned land in Malibu since the 1880s. In addition to stunning vistas stretching from Point Dume to the Palos Verdes peninsula, the Point Dume Club features a full slate of amenities.
Residents can access a heated pool, basketball and tennis courts, a library, a clubhouse and a car wash. Many mobile homes inside the Point Dume Club have been renovated into luxury accommodations with wood floors, gourmet kitchens and huge private decks. Although it was an affordable option for moving to Malibu in 1969, the rapid surge in property prices in Malibu has benefited Point Dume Club property owners.
According to Marcus & Millichap Broker Dustin Wilmer, who represented the seller in the deal, the average price of mobile homes in Point Dume Club for the last two years is roughly $2 million. However, he notes that prime units in Point Dume Club have sold for as much as $5.6 million. That’s a lot of money, but it only pays for the mobile home.
Point Dume Club residents still pay to lease the land beneath their mobile homes. This explains why mobile home parks are popular with real estate investment trusts (REITs) and private investors. They generate passive income for owners but require relatively little maintenance and there is no limit to how high the land lease prices can rise. The Chicago-based Hometown America Communities buyer was thrilled to close the deal.
In a statement confirming the purchase, Hometown said, “We’re excited to add Pointe Dume to our family of communities in California. Pointe Dume is a beautiful property and we intend to manage it in the same manner as the prior owners, honor current leases and comply with all local regulations. Hometown is a long-term investor and we value the long-range viability of the market and our communities.”
It remains to be seen how long that remains the case. By most estimates, the $200 million sale price is far below the parcel’s potential value if Hometown America Communities redevelops the land. However, the California Coastal Commission and the Malibu city government have a significant say over land development. In the meantime, it looks like it will be business as usual at the world’s most expensive mobile home park.
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