Archive

Posts Tagged ‘manufactured home land lease communities’

Alpha Touts Manufactured Home Communities for Healthy Boomers are Becoming Hot Investments

December 19th, 2014 Comments off

sun-communities=credit-posted-daily-business-news-mhpronews-com-Think that investing in a “senior” community means assisted living or nursing care? Think again. Many of today’s seniors are fit and healthy and living an active lifestyle. Many live in country-club-like manufactured home communities (MHCs) that feature pools, fitness facilities, game rooms, shuffle board, and assorted other amenities that appeal to fit and healthy seniors.

Who is singing such praises about investing in manufactured home communities?

Seeking Alpha (SA), a website focused on stock market news and financial analysis, extolls the wisdom in investing in Real Estate Investment Trusts (REITs) that cater to active seniors. SA profiled Sun Communities, Inc. (NYSE:SUI).

Besides operating all age communities, Sun has tapped into the expanding group of healthy and active seniors.

Their wisdom is confirmed by several sources including Care REIT (NYSE:HCN), which says that ”the number of people aged 75 and up is set to increase five times faster than the overall population.” That means that between 2014 and 2034 the number of people older than 75 will nearly double, going from 28 million to 52 million.

Other studies show that 85 percent of the 75 to 84 group doesn’t need help, and that 60 percent of the 85+ group doesn’t need a lot of help. It seems that REITs that provide housing to healthy boomers are set to see even more residents.

Obviously benefiting from this information, Sun Communities is taking steps to increase its holdings. Currently, this organization is involved in a $1.32 billion acquisition that will increase their holdings to 245 communities with approximately 90,000 home sites. More than half of these are located in Florida and Michigan. The deal, says SA,expected to increase funds from operations between 5% and 8% next year once the multi-step deal is fully completed.”

Alpha didn’t mention Sun’s recent $258 million deal for 7 MHCs in the Orlando FL market, but MHProfessionals focused on the land lease community sector didn’t miss that or its implication.

Such interest in MHCs is good news for the manufactured housing industry.  Older people, often being careful with their assets, often have the money to purchase a nice manufactured home in one of these choice communities. This appears to be a segment of the population on which manufactured housing professionals can cultivate and depend upon. ##

Related Stories:

(Photo Credit: Sun Communities)

sandra-lane-daily-business-news-mhpronews-com-75x75-Article submitted by Sandra Lane to – Daily Business News – MHProNews.

Manufactured Home Community sales heat up in Southwest Florida

October 25th, 2011 Comments off

Lake_Village_Manufactured_Home_Community_purchased_by_Equity_Lifestyle_Properties,_credit_HeraldTribuneHeraldTribune reports that the the market for acquiring manufactured home communities in Florida has heated up. While the economic downturn has driven conventional housing prices down, making them more affordable, incomes are also down. This makes manufactured home communities more appealing. Recently, Equity LifeStyle Properties (ELS) bought the nearly 300 home site 63-acre Lake Village ‘mobile home park’ in Nokomis for $23.8 million from a subsidiary of Hometown America. Equity LifeStyle paid $53.4 million for the 2,211-site Colony Cove manufactured home community in Ellenton. ELS paid $6 million for the 201-site Emerald Lake mobile home park in Punta Gorda. National RV Communities LLC of Scottsdale, AZ., bought the nearly 200 home site Saralake Estates off Bahia Vista Street for $10.55 million. During the boom, manufactured home land lease communities were being purchased by developers who planned to shut them down in favor of redeveloping, said Charles Ellis, a principal and vice president for acquisitions at National RV. The recent flurry of purchases is driven by the attractiveness of investing in MHCs. National was formed in 2005 and now owns 58 mobile home properties, 80 percent of them in Florida, many backed by financing from General Electric Capital Corp. “From an investor standpoint, the revenue is very stabilized,” Ellis said. Retirees and others may opt to pass higher priced conventional houses. “They’re more likely to buy a $30,000 or $100,000 park model or manufactured home,” Ellis said.

(Photo credit: HeraldTribune)

Manufactured Housing Industry growing market share? MHI says yes, pros question it

August 4th, 2011 Comments off

Graph_of_MH_Shipments_1991-2010_courtsey_of_MHI posted MHMSM.com MHProNews.comRealEstateRama picked up a press release yesterday from the Manufactured Housing Institute (MHI), issued by their president and CEO, Thayer Long. The article was likely aimed at the public, and thus within the scope of the ‘protect and promote’ mandate that associations correctly hold dear.  Comments to MHMSM.com from readers have come in from Industry professionals about the MHI PR piece.  Most have been ‘off the record.’ But the following quote from an MHI ‘Man of the Year’ and RV/MH Hall of Fame inductee, George F. Allen was shared on the record. “Hey Tony; you, Ken (Rishel) and I make a living, keeping our trade journalist fingers on the pulse of the manufactured housing industry. Well, here’s an unexpected conundrum, showcased by the Manufactured Housing Institute in a recent piece titled: ‘Market Share on Rise for Manufactured Housing Industry.’ The riddle? How can this statement be true, when  our industry’s annual new home shipment levels, during the past three years and this one, have hovered around the 50,000 level, down 86 percent from (1998)? MHI’s answer? Sale of new manufactured homes has declined at a lower rate than site – built homes, increasing our national market share by default. Geesh! What a sorry way to make the case for buying one’s product. And know what? There’re no fewer than four additional such anomalies in this article. Did you identify them?” GFA.” Allen has a featured article in MHMSM.com’s new August issue, entailed “Shots Across the Bow of MHARR and MHI.”  Another industry professional wrote, “It isn’t that MHI’s facts are per se wrong in their (new press) release.  The problem is their puff piece makes things sound rosy when in fact our Industry is in a sad state of affiars (sic). What we need is a bold national plan to advance our cause.  Will an article like their’s help sell more HUD Code homes? Will it help us (team up) with other associations and consumer groups to modify Dodd-Frank, which is coming at us like a Mack truck?”  (Editor’s note, parenthetical comments in the quote added).

(graphic of Manufactured Housing’s shipment slide since 1998 courtesy of the MHI)

 

Top REIT stock? Manufactured home community giant Equity Lifestyle Properties

August 4th, 2011 Comments off

Equity_Lifestyle_Properties_listing_at_Quail_run posted MHMSM.com MHProNews.comZacks reports that Equity Lifestyle Properties (NYSE:ELS) is the best performing REIT among the top five Real Estate Investment Trusts. Equity Lifestyle Properties (NYSE:ELS) gain of 1.77% makes them the current leader. Education Realty Trust (NYSE:EDR) ranked number two gaining 1.64%. Apartment Investment & Management (NYSE:AIV) ranks third, having lost 0.08%. Camden Property Trust (NYSE:CPT) follows with a loss of 0.17%. Associated Estates Realty (NYSE:AEC) completes the top five with a loss of 0.18%. MHProNews.com readers know that ELS has recently completed another phase of its acquisition from Hometown America of manufactured home land lease communities.  ELS ranked number 1 in the most recent Allen Report as the largest portfolio operator of manufactured home communities. ELS also has RV properties such as Thousand Trails in its portfolio.

(photo credit: ELS’ Plant City FL listing)