Royal Palms Manufactured Home & RV Community

7901 E Ben White Blvd, Austin, TX 78744

Sold

Price On Call

Property ID:

None

Featured

Description

Royal Palms is a 229-space RV and Manufactured Home Community located in the heart of Austin, Texas. Royal Palms was originally built in 1971 and has enjoyed the current ownership since 1982. During that time, the property has been meticulously cared for and maintained. Originally built as a manufactured home community, it has expanded its availability to RV living, as well as 100% resident-owned Manufactured Homes.

Currently, there are 110 RVs and 119 Manufactured Homes. Because of the incomparable 21.25 acre location, at the intersection of Ben White Boulevard and State Highway 183, 1-mile west of the Austin Bergstrom International Airport and a short 5-minute drive from downtown Austin, it is no surprise that Royal Palms has maintained a near 100% occupancy rate for the majority of its existence. Royal Palms operates on city water, city sewer, and City of Austin electric services.

Every site is individually metered and offers full 30-amp and 50-amp hookups. Since Royal Palms was designed as a manufactured home park, residents and guests benefit from oversized lots – many of which accommodate a 76-foot manufactured home. Beautifully graceful, mature trees shroud the Park from the intense Texas summer heat and provide residents and guests with an unparalleled living experience, which few parks in Central Texas can offer.

Landan and his team facilitated the sale of a 229-space park, strategic 1031 exchange, and acquisition of 8 replacement properties resulting in truly passive ownership and a drastic increase in annual cash flow for our client.

Challenge

In October 2023, the owner of the iconic Royal Palms Manufactured Housing and RV Park in Austin, TX, engaged with Landan Dory at North Star to explore selling his park after 42 years of ownership. Over the years, Mr. Sidney Lanier had been approached countless times by brokers and investors wanting to buy his property, but he always declined. As he finally considered retirement, he was faced with an overwhelming amount of interest from prospective buyers and brokers, leaving him unsure of the park’s true value and who the best buyer might be. Mr. Lanier’s primary challenge was to find a trustworthy broker who could guide him through the process, evaluate the property’s worth, and ensure he received the best possible terms. At the same time, he wanted a strategic way to preserve and increase his wealth without the daily management that came with owning and operating a manufactured housing community

Action

Landan and his team began by conducting a no-obligation property evaluation, including a thorough financial analysis, comparable market rents and sales, debt assumptions, and a highest and best use analysis. This resulted in a projected sale range with a margin of error within 5%, which Mr. Lanier found acceptable. To ensure maximum exposure, North Star launched a national marketing campaign targeting hundreds of qualified investors and park owners. The response was remarkable: within three weeks, over 420 confidentiality agreements were signed, and more than 30 qualified offers—ranging from cash to seller-financed—were submitted. Ultimately, the sale price was achieved within 1% of the initial pricing expectation, a significant accomplishment in today’s competitive market.

Result

Royal Palms sold in June 2024 within the top 1% of all manufactured housing parks in the United States based on cap rate and price-per-space. Once the sale was complete, Landan worked closely with Mr. Lanier to orchestrate a strategic 1031 exchange, allowing him to defer over $9 million in capital gains and depreciation recapture taxes. The sale proceeds were reinvested into a diverse portfolio of corporate-guaranteed properties with long-term leases to nationally recognized tenants, including CVS, AutoZone, Dollar General, Caliber Auto Care, Classic Collision, TXB, Refuel, and a beach condo in Gulf Shores, AL. This strategic redeployment of capital resulted in an impressive 17.42% increase in Mr. Lanier’s annual net cash flow compared to the income he was generating from Royal Palms. Perhaps most importantly, he now enjoys the freedom of retirement, with no day-today management responsibilities, while benefiting from long-term, stable income.

Conclusion

The successful sale and 1031 exchange allowed Mr. Lanier to unlock the value of his iconic manufactured housing community while increasing his wealth and reducing his management burden. His story serves as a blueprint for other owners of similar properties who are looking to transition into a new chapter, preserving wealth while achieving greater financial freedom. If you are considering selling your park and reinvesting the proceeds, our team can help you navigate the process, ensuring you get the best possible result.

Quick Stats

Over 30 qualified offers procured from reputable buyers.
Capital Gains and Depreciation Recapture taxes reduced from over $9m to less than $40k (225x reduction)
96.97% of the equity from the sale of the property redeployed into this new portfolio.
Annual Net income increased by 17.42% over the highest grossing year at Royal Palms (2023)
One property diversified into eight different properties
Management-intensive property exchanged for Abs NNN (Passive Income) properties.
Each exchanged property carried a corporately-backed lease guaranty with a weighted average lease term of over 17 years.