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Barron’s – Will Freestone Capital Become Next Public Manufactured Home Community Operator?

July 25th, 2017 Comments off

FreestoneCapitalManagementBarronsManufactruiedHomeIndustryCommunitiesParksDailyBusinessNewssMHProNewsFreestone Capital Management, an investing firm based in Seattle, WA, has spent the last decade working their way into becoming one of the larger owners of manufactured home communities in the United States.

Now they are setting their sights on becoming even bigger.  And perhaps, going public.

It all started just after the 2008-09 financial crisis, when Freestone’s founder Gary Furukawa purchased three manufactured home communities.

After operating them for a few years the value of his investment was clear.

The case study by Freestone Capital Management found that benefits of owning manufactured home communities include the increasing demand for low-income housing, and relatively low capital expense, among other factors.

Per their website, Freestone is known for diversified endowment-type portfolios – and they work with both wealth management and investing management for their 950 clients.

ManufacturedHomeCommunityGraphicCreditFinancialServicesPerspectivesBradley-PostedMHProNews-

Manufactured Home Land-Lease Community is shown for illustration purposes only. Graphic credits, Financial Services Perspective, Bradley.

Investing in the manufactured home community sector on behalf of those clients made sense to them – and they’re preparing to continue to reap the benefits of this growing and much-needed industry.

According to Barrons, the firm has already invested $300 million in manufactured housing – specifically in communities that have around a 70 percent occupancy.

Right now, the report says that those investments are generating about a 7 percent yield.  But as occupancy grows – their obvious goal – the return on those investments should rise even more over time.

Our business case is to take [occupancy] to 95%, so the yield goes up a lot,” says Erik Morgan, senior advisor of the firm. “And we’re large enough to maybe take that private investment and make it public.”

ErikMorganSeniorPartnerInvestmentManagementFreeStoneCapitalDailyBusinessNewsManufacturedHomeLandLeaseCommunityResearchReportsMHProNewsWhile many investors are looking to move into the digital age, focusing their investments into stocks like Amazon and Microsoft, Freestone is looking into a more long-term venture that they expect to see yielding them and their investors big returns in the future.

Our focus is typically on trying to find great businesses trading at attractive prices and owning those businesses for a long time,” Morgan says.

Morgan, who was named Barron’s Best Advisor in Washington, started off his career investing in those same sorts of stocks like Amazon – which ended up being a good investment in the long-haul – but he decided that wasn’t the direction in which he wanted to see his career go.

These days, working with Gary Furukawa and 29 other investors at Freestone, Morgan says they are looking to invest in cheap stocks, rather than the hot stocks that pose a higher risk to them and their clients.

Amazon remains a strong long-term opportunity, especially given the signals from their recent bid for acquisition of Whole Foods Market.

But Morgan believes that more traditional investments, like real estate – specifically the manufactured home community sector – are and should be their current focus.

GaryFurukawaSeniorPartnerFreestoneCapitalManagementDailyBusinessNewsManufacturedHomeCommunityInvestorsResearchReportsDataMHProNews

With $300 million already invested in manufactured home land-lease communities, Gary Furukawa, Erik Morgan, and their 29 associates believe they are in the right market.

Affordable housing is something that will always be in demand. Manufactured homes appeal to more than just low-income workers, as even millionaires and celebrities own manufactured homes.

It’s clear they’re confident in their investment in manufactured home communities – and why wouldn’t they be? # # (News, analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to Daily Business News for MHProNews.

 

 

 

 

 

Chinese Buying U. S. Firms at Record Rate. Will housing Fall-ow?

February 24th, 2016 Comments off

China_buying_foreign_businesses__reuters__creditMHProNews has learned from businessinsider that Chinese companies are buying foreign businesses at a record rate as their own economy slows to a pace not seen in 25 years, and investors are feeding on buying outside the country. The Chinese government has to approve these deals, plus they have to obtain enough foreign exchange to make the acquisitions, something the government watches very closely. Additionally, many of the purchases are made by state-owned firms.

So far this year there have been 82 Chinese outbound deals worth $73 billion, reports Dealogic, up from 55 deals valued at $6.2 billion in the same period of 2015. Chinese outbound deals broke a record last year with 607 mergers and acquisitions (M&A) valued at $112.5 billion.

This year General Electric sold its appliance business to Qingdao-based Haier, while investment firm Dalian Wanda is buying a majority stake in Hollywood’s movie studio, Legendary Entertainment. Another Chinese investment firm is buying the Chicago Stock Exchange, and ChemChina is acquiring the Swiss seeds and pesticide group Syngenta for a reported $48 billion.

With the slowdown of the economy, Chinese corporates are increasingly looking to inorganic avenues to supplement their growth,” Vikas Seth, head of emerging markets in the investment-banking and capital-markets department at Credit Suisse, told businessinsider.Some of the primary motivations for cross-border acquisitions are access to new markets, brands, technologies, R&D capabilities and, in some cases, to products and supply chains that can be sold into a buyer’s distribution networks within China,” Seth added.

While Wall Street investment bankers are pleased—they earned $558 million in outbound deals to China last year, and have already pocketed $121 million this year—M&A deals are subject to scrutiny by the Committee on Foreign Investment (CFIUS) in the U. S. The committee prevented the sale of Philips’ lighting business to an Asian group for $3.3 billion.

CFIUS will likely take a hard look at the potential sale of the Chicago Stock Exchange, especially since 45 members of Congress sent a letter to CFIUS asking for a complete investigation. This proposed acquisition would be the first time a Chinese-owned, possibly state-influenced, firm maintained direct access into the $22 trillion US equity marketplace,” the letter reads. “While it is unclear the level of influence the state holds over CCEG, the firm is involved in a number of important Chinese sectors that would likely require close ties to the state.”

The housing industry is a huge part of the U. S. economy. How long might it be before the Chinese make serious acquisitions in the building sector? ##

(Photo credit: reuters–China buying foreign businesses)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Australian Land Lease Community on the Block

October 4th, 2013 Comments off

A 100 home site manufactured housing community has been listed for sale in New South Wales, on the south east coast of Australia. Residents of Acacia Ponds Village near Mirambula pay $85 a week for site rent, and it is 83 percent occupied, making it a good investment because of the consistent rent returns and room for upside, according to what CBRE’s Andrew Jackson tells propertyobserver.com.au. CBRE recently sold the Oaklands Village Manufactured Home Estate in Wollongong for $13.4 million to Alceon of Australia, which, MHProNews has learned is an advisory capital and investment firm.

(Photo credit: TriStar Estates)

Green Courte buys another ‘Senior’ Manufactured Home Community

August 23rd, 2013 Comments off

green-court-partners-posted-on-mhpronews-comGreen Courte Partners, LLC announced the acquisition of Lamplighter Manufactured Home Community, an age-restricted land-lease community, containing 260 home sites, located in Port Orange, Florida. Green Courte engaged American Land Lease, Inc., a wholly-owned subsidiary of its second fund, Green Courte Real Estate Partners II, LLC, to manage the community. American Land Lease manages Green Courte’s land-lease/manufactured housing community portfolio. That portfolio now includes over 19,300 developed home sites located across 54 communities in eleven states. American Land Lease will operate the community under their “55+” lifestyle brand, Solstice Communities. As MHProNews readers know, Green Courte Partners, LLC is a private equity real estate investment firm focused on niche real estate sectors, which includes manufactured housing, parking garages and more commercial real estate interests. American Land Lease CEO, David Lentz, is also the Chairman of the National Communities Council (NCC) division of the Manufactured Housing Institute (MHI). ##

(Image Credit, Green Courte Partners Logo)

Green Courte Adds Two Communities to its Portfolio

July 31st, 2013 Comments off

Lake Forest, Ill.-based private equity real estate investment firm Green Courte Partners, LLC announces the acquisition of two all-age land lease communities in southern Maine. Incorporating 483 home sites, MHProNews has learned Town & Country Village in Lisbon and Maplewood Manor/Merry Meeting in New Brunswick will be managed by American Land Lease, Inc., a wholly-owned subsidiary of Green Courte. American Land Lease manages the manufactured housing community portfolio of Green Courte, which now includes 53 communities in eleven states comprised of 19,000 developed home sites.

(Photo credit: Green Courte Partners, LLC)

Australian Manufactured Home Community Changes Hands

June 26th, 2013 Comments off

Investment firm Alceon has acquired the Oaklands Village Manufactured Home Estate in Wollongong, New South Wales, on the southeast coast of Australia, for $13.4 million. Sold by the Oaklands Village Trust, the community has 258 home sites and is located just south of Sydney, Australia, according to theaustralian.com. As MHProNews has learned independently, in some Australian communities site-built and manufactured homes are sited next to each other.

(Photo credit: mobilehomeliving.org–Australian manufactured home)

Green Courte Announces Promotion of Braden Rudolph

June 19th, 2013 Comments off

Private equity real estate investment firm Green Courte Partners, LLC announces the promotion of Braden Rudolph to Vice President, Asset Management. A 2010 MBA graduate of Northwestern University’s J L. Kellogg School of Management, Rudolph has been active in strategic initiatives at American Land Lease, Inc., an owner/operator of 50 manufactured housing communities comprised of 18,500 home sites. A Senior Associate with Green Courte since June 2011, he was also a principal in the company’s acquisition of The Parking Spot, a major player in near-airport parking facilities, as pehub.com informs MHProNews. Green Courte specializes in parking asset and land lease community investments.

(Image credit: Green Courte Partners, LLC)

Green Courte Promotes Rudolph

May 7th, 2013 Comments off

MarketWatch informs MHProNews private equity real estate investment firm Green Courte Partners, LLC announces the promotion of Braden L. Rudoph to the post of Vice President, Asset Management. A senior associate since June 2011, Rudolph has been involved in acquisitions and asset management, and was involved in the company purchase of The Parking Spot, an airport parking property with 35 locations and 60,000 spaces. Through American Land Lease, Inc., which merged with Green Courte in Dec., 2008, the company owns and operates 50 land lease communities with 18,500 homesites. Rudolph has a Masters of Business Administration from the J. L. Kellogg School of Management at Northwestern University in Evanston, Ill.

(Image credit: Green Courte Partners, LLC)

Green Courte Announces New VP

October 3rd, 2012 Comments off

PRNewswire tells MHProNews Green Courte Partners, LLC announces the appointment of Thru A. Shivakumar as Vice President, Acquisitions. While Ms. Shivakumar’s background is with parking facilities, and her focus will remain in that sector, her experience includes asset and portfolio management. Chicago-based Green Courte is a private-equity real estate investment firm specializing in manufactured home communities and parking assets.

(Image credit: Green Courte Partners, LLC)

YES! Acquires Large Portfolio

August 6th, 2012 Comments off

Joe Kelly of the Iowa Manufactured Housing Association tells MHProNews Denver-based YES! Communities and real estate investment firm Stockbridge Capital Group of San Francisco have purchased a portfolio of 42 manufactured housing communities from American Residential Communities (ARC), also of Denver. The 10,500 home sites, located in Iowa, Illinois, Nebraska, North and South Carolina, North Dakota, and Oklahoma brings YES! Communities total ownership to 117 communities in 16 states with more than 30,000 home sites.

(Image credit: YES! Communities)