Price: $308,000
($3,461/space)
Cap Rate: -1.2%
In Receivership and Sold Through Bankruptcy Court
Upside in Servicing Next Energy Boom
Blue Mountain Village is an 89-space manufactured housing
subdivision located in Dinosaur, Colorado. The park has 86
vacant spaces. Dinosaur is in between Vernal, Utah, and
Craig, Colorado on US Hwy 40. Vernal enjoyed a major energy
boom during the late 90's until September 2008. Craig
enjoys ongoing prosperity from its proximity to two major
power plants and a thriving agricultural industry. The park
is well positioned to house energy workers during the next
energy boom. Dinosaur is near the Dinosaur National Park as
well as the Flaming Gorge National Recreation Area. Blue
Mountain Village was built in 1982 by the Deserado Coal Mine
to house its employees and other oil and gas production
workers during that era’s energy boom. According to the
city, the park was completely occupied at one time. When
the boom ended in the late 1980Â’s, Deserado sold the park
and it was held by an investor until it was sold in 2004 for
$300,000. The lots, which are on city water/city sewer,
were subsequently subdivided but there was a long delay over
a dispute concerning whether or not the homes needed to be
set on a foundation; or, if homes could be tied down as is
the typical practice when manufactured homes are set on
leased spaces. According to the current on-site manager,
any homes brought into the park need to be placed on a
foundation. By the time the dispute was resolved, the
energy boom had ended and there was limited demand for
rental homes or lots at the park, according to the parkÂ’s
manager. Based on sales activity in 2008 and 2009, an
investor selling the lots could possibly expect to sell them
for approximately $4,500 to $5,500 per lot subject to
prevailing market conditions. Potential buyers are
encouraged to investigate with the town if it might be
possible to revert the park back to an unsubdivided,
traditional, land-lease park. The spaces accommodate Single
Wides. Double Wide homes would likely need to be set on two
lots. The park is currently under the control of Valley
Mortgage Inc., as Debtor in Possession, and any sale is
subject to approval by the Bankruptcy Court.