SAN JOSE – A mobile home east of downtown San Jose was bought by a company chaired by legendary real estate manager Sam Zell in a deal that took place amid rising property prices in Silicon Valley.
A subsidiary of Equity LifeStyle Properties, chaired by Zell, has bought Sunshadow, a prefabricated housing community in San Jose.
Sunshadow, located at 1350 Panoche Ave in San Jose, near the intersection of Highway 101 and Story Road, has 121 units according to Chicago-based Equity Lifestyle.
Equity Lifestyle’s subsidiary, which functions as MHC Sunshadow II, purchased the 13.6 acres under the mobile home park, according to public documents filed with Santa Clara County officials on Sept. 30.
Equity Lifestyle paid $ 12.25 million for the property, the county records show.
In the months before the sale was completed, the property was marketed by Renz & Renz from Gilroy, a trading and investment broker.
“The competition for inexpensive living in the region coupled with the fast-moving technology world” in Silicon Valley “makes this location solid and unique,” says the Renz & Renz brochure.
Equity Lifestyle had signed a long lease on the property for the past 22 years, according to Jennifer Ludovice, a spokeswoman for the equity firm.
“The owner recently decided to put it up for sale and we decided to buy the property,” said Ludovice.
Mobile home parks seem to have gained some level of popularity with investors amid skyrocketing house prices in the Bay Area.
In August, Chicago-based American Hometown Communities bought a massive 800-unit RV park in Sunnyvale, Plaza del Rey, for $ 237.4 million. This mobile home park in Sunnyvale is not far from mega campuses and large office parks dominated by Apple, Facebook, Google, LinkedIn and Amazon.
Regarding the Sunshadow mobile home park, the marketing brochure suggested that the complex is a preferential purchase for buyers.
The Renz & Renz brochure described Sunshadow’s financial prospects.
According to its website, Equity Lifestyle has more than 200 manufactured residential communities in North America, most of them in the US.
The real estate company will continue to operate Sunshadow as a mobile home park.
“We look forward to continuing to offer our customers consistency in management and residency,” said Ludovice.