By Kate Snyder
The Puget Sound region continues to record sales activity in its residential market with a recent portfolio acquisition involving three mobile home parks in Lynnwood and Bothell. An entity affiliated with GSC Investments purchased the properties from two sellers for a total of $42.5 million, according to Snohomish County public records. The seller for Lynnwood Heights Mobile Home Park was an entity affiliated with Pleasant Valley Manor, LLC and Larry Clark. For the other mobile home property in Lynnwood and the property in Bothell, the sellers were entities affiliated with Robert Shaw, Royalwood Estates, LLC and Canyon Mobile LLC.
Jonathan Bond, co-founder and principal of GSC Investments, announced the sale in a LinkedIn post and provided more details about the deal. According to the post, the deal involved a total of 325 lots.
“Attractive seller financing saved the day again and made this deal happen,” Bond said in the post. “The financing terms were: 3.5 percent fixed rate for five years, 50 percent LTV, full-term interest-only, and no prepayment penalty.”
The three properties are located at 3333 228th St. SE, Bothell, and 18501 52nd Ave. W and 4111 164th St. SW, Lynnwood. The Bothell property traded for $22 million while the property at 18501 52nd Ave. sold for $12 million. The 164th St. SW property – also known as Lynnwood Heights Mobile Home Park – was purchased for $9.5 million.
“We continue to see sellers offer financing as a way to replace a portion of their current income and defer capital gains taxes,” Bond said on LinkedIn. “I’m sure our fellow park buyers are pursuing seller financing and it’s totally worth fighting hard for it right now, especially for a term of at least three to five years so that the odds of refinancing in a more favorable lending environment improves.”
GSC Investments is a fully integrated real estate investor and operator of manufactured housing communities, according to the firm’s website. Last year, the company purchased Martha Lake Mobile Manor in Lynnwood for $18.3 million, or approximately $138,762 per unit, according to previous reporting from The Registry. The 132-unit property is located at 415 Lakeview Road.