Our Strategy
Our Investment Thesis
Due to the fundamental need for affordable housing in America, we believe manufactured housing communities to be one of the best real estate investment available today for the following reasons:
Limited (and Decreasing) Supply
Over the past 30-or-so years nearly every city and county government nationwide has outlawed construction of new manufactured housing communities. Governments have changed zoning to be ‘apartment only’ multi-family, or have changed density such that only single-family housing may be built.
Lower Turnover
Residents of multi-family communities move out approximately every 2 years (e.g. 50% annual tenant turnover). Residents in manufactured housing communities tend to own their homes. They show pride of ownership, and if and when the time comes to move, they usually sell their home to a new resident rather than pay $4,000 - $8,000 to move it. This means as long as the mobile home is cared for, someone will be paying rent on it until it ‘end-of-lifes.’ We estimate mobile homes to have a 50-year useful life, which means turnover should be around 2% annually, perhaps a bit higher due to a few move-outs. Lower turnover means lower vacancy and lower marketing and move-in/out costs.
Repair & Maintenance
By virtue of owning their homes, residents are responsible for many of the expenses multi-family property owners are expected to incur. Property owners are left with Repair & Maintenance costs primarily for the land (mowing, paving, tree trimming, plumbing). We estimate Repairs & Maintenance expenses for manufactured housing communities to be 60% - 75% less than comparable costs for multi-family property owners.
Our Acquisition Criteria
We are aggressively seeking opportunities to acquire Class B manufactured housing communities between $5M and $50M throughout the United States. It is our goal to find exceptional, risk-adjusted assets in high-growth markets with a focus on Core Plus and Value-Add opportunities. As an owner, investor, and operator, we are keyed into the structuring, negotiating, and documenting of asset purchases and sales. Our process allows us to find undervalued and off-market opportunities.
We pride ourselves on our industry relationships and the use of technology to find opportunities. Impact-focused investors invest with us because we have a proven track record of delivering market rate returns while positively impacting the lives of our residents.
Our Investment Locations
We invest opportunistically throughout the country, targeting underserved areas where we can have the greatest impact. We specifically target Primary and Secondary MSA’s with a population no less than 500,000. We avoid any locations that are prone to flood damage or hurricanes. As a result we have acquired 1,500+ manufactured housing lots, in the Midwestern United States.
“Values can’t just be word’s on a page. To be effective, they must shape action.”
— Jeffrey Immelt
“Elevate does business the right way, they’re elevating the standard of business”
I had a number of unsolicited buyers express interest in my parks. One of the reasons I was willing (after 25 years of ownership) to accept an unsolicited offer from a San Diego-based firm that owns a bunch of mobile home parks around the USA is that they have a good and decent track record elsewhere. Their approach to purchasing my parks was grounded, thorough, and committed to maintaining them. I’m happy I chose to sell to them.
Gary & Connie Hoffman
Previous owners of Sun Tree Hollow and Country Chalet MHPs in Ketchum, ID
Our Social Impact
Our investments create measurable positive impacts for investors, communities, and the environment. Our Social Impact initiatives are two-pronged, as we immediately on increasing economic upward mobility and homeownership rates in the communities we serve, while partnering with Ashoka, the leader in social entrepreneurship, to advocate for systemic level changes to policy.