Blue Pacific Residents Purchase Their Park


CASE: Robert Alcorn, et al. v Doheney-Vidovich Partners

In December 1, 2006, the residents of Blue Pacific Mobilehome Park in Aptos, CA, filed a lawsuit against the park owner for failure to maintain their park. David Semelsberger and James Allen of the San Diego law firm of Endeman Lincoln Turkey & Heater, LLP represented the residents. As part of the 2008 settlement of the lawsuit, the residents were given the opportunity to purchase the park at a reduced price. On August 30, 2011, after a long loan process, the residents closed escrow on the park purchase.

The residents contacted Endeman Lincoln Turek & Heater, LLP in 2006 because of problems with their electrical, water and sewer systems, as well as the clubhouse, pool and streets. After the lawsuit was filed, the park owner made improvements to the clubhouse and streets.

The Plaintiffs represented about 50 of the 100 total spaces in the park. The Plaintiff group reached out to non-Plaintiff residents, and obtained 85% participation of all residents to buy the park.

Deane Sargent of PMC Financial acted as the loan consultant for the residents, who were able to obtain a first mortgage loan guaranteed by HUD. The loan is a 40-year, full amortization, non-recourse loan made to the Blue Pacific Mobile Home Owner’s Association (BPHOA). The financing structure included hundreds of thousands of dollar for reserves, such as for:

  • Future replacements
  • Debt service
  • Daily operations
  • Fund for additional improvements in the park

David Loop acted as the Association’s attorney in the purchase process.

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