The private equity firm, the Carlyle Group, has been reported to have entered a joint venture to upgrade Pacific Skies Estates, a mobile home park in Pacifica, in a deal valued at $42 million. The 93-lot community is located in near proximity to Sharp Park Beach and was established over 60 years ago. The location is a short drive from Peninsula cities like San Mateo and Burlingame and downtown San Francisco.[contextly_sidebar id=”EkYTAGXfLrpHkIFCm0xWf0fQd01WB3VK”]The current owners and Carlyle, as the new majority stake owners in the venture, have greed to upgrade the infrastructure, build a new 1,000-foot boardwalk along the oceanfront and bring in brand new luxury manufactured homes to the estate.
Carlyle has previously invested in similar communities in Florida. However, Pacific Skies project differs from traditional mobile home parks in that the joint venture partners will own the majority of the units that will be offered up for rent, rather than tenants owning the units and paying rent on the land only.
The units are planned to resemble single-family homes and not the trailers usually found in similar estates. The owners are therefore able to capitalize on premium rental yields, while being able to avoid some of the planning and political issues that might arise with such development projects. The overall number of units will most likely remain unchanged, but only a handful of current residents will remain as homeowners once the re-development is completed.
The long-term owners of Pacific Skies retain a minority stake in the 10-acre site and the business. The property manager Greystar will continue to oversee the site after the project is finished.