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Posts Tagged ‘lifestyle properties’

U. S. Supreme Court may Hear Rent Control Challenge

June 7th, 2013 Comments off

The U. S. Ninth Circuit denial to rehear the Equity LifeStyle Properties (ELS) vs. City Of San Rafael ruling may lead to a battle in the U. S. Supreme Court. The court’s decision handed down in April establishing rent control in manufactured housing communities may embolden rent control advocates across the state, but the battle is far from over, according to Attorneys Hart, King & Coldren (HK&C). The April 13 three-judge panel decision had reversed a decision by District Court Judge Vaughn Walker, who ruled rent control unconstitutional. Whether ELS takes the review to the U. S. Supreme Court or not, as MHProNews has been informed, the future remains open to constitutional challenges whenever owners are denied rent increases. But while the battle rages, HK&C says “there continue to be opportunities to maximize property values through rent increase applications, subdivisions or closures. The pursuit of these opportunities may also help set the stage for successful taking claims.” .

(Image credit: photographersdirect)

Sun Communities Touted as Good Investment

June 5th, 2013 Comments off

According to insidermonkey, Sun Communities, Inc. (NYSE:SUI), a real estate investment trust (REIT) that owns and operates 184 manufactured housing and recreational vehicle communities, returns a higher dividend yield (5.0% versus 2.6% for Equity Lifestyle Properties, Inc.) and is more capital efficient (ELS has a higher capex-to-sales ratio of 4.1 % versus 2.6% for Sun) than its closest rival. For home buyers in search of low cost housing, the Manufactured Housing Institute (MHI) reports in 2011 the average sales price for a manufactured home was $60,600 compared to a site-built, single-family home cost of $207,950. In addition, average rent for Sun’s manufactured homes is $0.55 per square foot versus $0.92 per square foot for an apartment. But because most Sun residents own their own homes but rent the land, the company’s capital outlay is primarily for maintenance of common areas and amounts to less than three percent of its revenues for 2012, its most recent 10-K. As MHProNews knows, Sun has 67,000 developed homesites in 18 states.

(Photo credit: Sun Communities, Inc.)

Zell says the Stock Market will Tumble

May 17th, 2013 Comments off

Sam Zell, Chairman of Equity LifeStyle Properties, Inc. (ELS) tells Fortune magazine the stock market is riding high but the underlying fundamentals are weak and the market will fall. “The current euphoria in the stock market will be adjusted, and I hope that’s all that happens,” he says. Noting that large investors are buying houses in quantities, which is pushing up prices, he says they may end up losing money because managing a house is much different than managing apartments.  He says the stock market is like the housing bubble right before it popped, and criticizes the Federal Reserve for its Quantitative Easing, which will eventually lead to inflation. “We’re seeing a tsunami of liquidity. But I don’t know that necessarily means things are better,” he adds. As MHProNews knows, ELS is the largest owner of manufactured housing and recreational vehicle communities in North America with 380 properties and over 140,000 homesites.

(Photo credit: The Wall Street Journal)

Zell: Multifamily a Good Investment

May 10th, 2013 Comments off

Bloomberg reports Sam Zell, chairman of Equity LifeStyle Properties, Inc. (ELS), says multifamily is the only sector of the real estate market that is a smart investment, and says his real estate holdings are down to 30 percent, a record low for him. Noting stocks are overvalued (the S&P is up 14 percent this year), he says, “I think about the headwinds in the world today, and I look at S&P, and I do not know how you can be wildly optimistic.” But he says, “I think the multifamily market will continue to prosper regardless of what happens to the single-family market.” As MHProNews knows, ELS is the largest owner of manufactured home and recreational communities in North America with 380 properties comprised of over 141,000 home and RV sites.

(Photo credit: Equity LifeStyle Properties, Inc.–Lake Haven, Clearwater, Fla.)

Largest Manufactured Home Community CEO Speaks

April 26th, 2013 Comments off

SeekingAlpha reports Equity LifeStyle Properties, Inc., the largest operator of manufactured home communities in the U.S., issued the transcript of its conference call for the first quarter 2013 financials April 23. CEO Margeurite Nader, noting the consistency of growth in their funds from operations (FFO), said demand continues to be strong for manufactured housing and the company focus is on increasing ownership. While the used sales volume increased 15% this first quarter, ELS and Cavco Industries, Inc. entered an agreement for Cavco to put homes in ELS communities and offer financing services. In the RV sector she said transient revenue rose ten percent over last year, mostly from Florida and Arizona, new RV distribution channels have been established, and a deal is cooking with a large RV rental firm. In addition, CFO Paul Seavey covers, in detail, the financials for Q1 2013 as well as expectations. MHProNews understands ELS is the largest MH and RV community owner with over 140,000 sites. For the complete transcript, click here.

(Photo credit: Equity LifeStyle Property–Calif. Country Club)

Residents Seek State Protection from Landlord

March 27th, 2013 Comments off

According to lehighvalleylive residents of Greenbriar Valley manufactured housing community (MHC) in east-central Penn. allege owner Equity LifeStyle Properties, Inc. (ELS) is unjustly raising their rents and they are seeking protection, as they approach April 18 when rents for the 319 site community will rise again. One residents says his site rent has increased from $374 to $539 a month in ten years. At a Greenbriar homeowners association meeting State Rep. Robert Freeman says he sponsored legislation last year that gives manufactured home owners more rights if their community is sold, and will work with residents to seek more protection. He favors rents being tied to the consumer price index and intends to meet with the attorney general regarding protection for homeowners under the state’s Consumer Protection Act. As MHProNews knows, ELS is the largest owner of MHCs in North America with some 380 communities comprised of over 141,000 homesites.

(Photo credit: Bill Wechter/nctimes)

MHC Residents Gather over Rent Control Issue

March 13th, 2013 Comments off

GTWeekly informs MHProNews residents and former residents of De Anza Mobile Home Park in Santa Cruz, Calif. gathered recently to discuss the community’s loss of rent control in 2003 after a four-year federal battle between the city and what is now Equity LifeStyle Properties (ELS). The judge ruled rent control unconstitutional, which allowed ELS to raise site rents to market rate. However, the court did allow residents to enter into a 34-year lease that maintained rents at their previous level, but once the MH changes hands, the rent can go up unfettered, which in turn makes it more difficult for owners to sell and thus regain the equity in their homes. Ishbel Dickens, executive director of the National Manufactured Home Owners Association, says, “How about you start working for rent control at the state level? There are one million individuals living in manufactured housing communities in California. That’s a loud voice to take to the legislature. Don’t agonize—organize.”

(Photo credit: Santee Patch–Santee, CA)

ELS Reports Q4 Financials

January 30th, 2013 Comments off

RTTNews says Equity LifeStyle Properties (ELS) reports revenues for Q4 2012 increased to $171.93 million from $162.32 million for the same period in 2011. Funds from operations (FFO) for the fourth quarter hit $50.3 million, or $1.11 per share, as compared to $44.8 million, or $0.99 per share for the same period the previous year. For fiscal year 2013, the company anticipates FFO per share to range from $4.94 to $5.14. MHProNews understands ELS, the largest MHC owner in North America, owns and operates 380 communities comprised of over 141,000 homesites.

(Photo credit: Equity LifeStyle Properties, Inc.–Lake Haven, Clearwater, Fla.)

MHC Residents: Busted Walkways are Dangerous

January 7th, 2013 Comments off

The StandardExaminer reports from Farr West, Utah the Westwood Village Homeowners Association will meet Tue., Jan. 8 to discuss cracked and uneven sidewalks that pose a risk to the 400 seniors who live in the 350 homes at the MHC. After attempts to get a response from owner Equity LifeStyle Properties, Inc. were not successful, the homeowners association decided to go public with their plight. Streets, sidewalks, and driveways are allegedly poorly maintained, and the roots of trees have contributed to the damage, especially worrisome for those who can only move around with the aid of walkers. Association president and resident Richard Robinson says he hopes the owner will have a representative at the Tue. meeting. As MHProNews knows, Equity LifeStyle is the largest owner of MHCs in North America.

(Photo credit: Bryon Saxton/StandardExaminer–Richard Robinson, homeowners association president)

ELS Enhances Texas Presence

December 31st, 2012 Comments off

MarketWatch reports Equity LifeStyle Properties, Inc. (ELS) acquired two land lease communities in Texas comprised of 1,765 sites on 175 acres for $25 million cash. Located in the Rio Grande Valley, age-restricted Victoria Palms Resort, with 270 manufactured homesites and 893 RV sites, and Alamo Palms, also age-restricted with 293 MH sites and 350 RV sites, add to the company’s presence in the south Texas market. ELS’ portfolio already includes eight properties with 5,100 sites in the area. As MHProNews knows, ELS owns or has an interest in 383 MHC and RV properties in the U.S. and British Columbia, Canada comprised of 142,679 sites. ELS closed down in trading Dec. 28, -0.75% at 66.50.

(Photo credit: Equity LifeStyle Properties, Inc.)