Using a revenue-based valuation, we are able to negotiate a price that works for both the Seller and the Residents.
After settling on a price, we execute an assignable, commercial Purchase and Sale agreement between the Seller and the Northwest Cooperative Development Center of which ROC Northwest is a program.
With PSA in hand, we call a meeting of the residents where they discuss the purchase, consider the costs and benefits, form a legal corporation, and ultimately decide whether to take assignment of the PSA.
The ROC Northwest team works with the new corporation to ensure a clear title, appraise the property, conduct a property condition report, and secure funding commitments.
Residents approve financing, sign closing documents, and have the organizational structures in place to hit the ground running on day one after closing.
Only after we have a signed contract with the owner of the park.
Fair market value, based on its continued use as a mobile home park. We use a revenue model to determine the value of each economically occupied lot. Other assets (such as rented apartments) are evaluated on a case-by-case basis.
Yes. At the moment, all acquisitions must be at least 75% manufactured housing units.
A newly-formed nonprofit corporation owned by a majority of the residents of the park. Each household applies for — and purchase — a membership. Non-member households stay in the park and rent from the corporation.
Ninety to 120 days, depending on deal complexity. Like all commercial transactions, timelines are subject to the ability to expedite due diligence.
As a condition of the financing, residents must agree to a minimum 10-year operations support & training relationship with ROC Northwest.
I’m happy with our decision to sell to the residents. ROC Northwest was personable, persistent and passionate.