A Capital Idea!

by L. A. Tony Kovach

One Vision for Metropolitan MHC Rebirth
(an MHM flashback article)

Every industry veteran knows the challenges that older ‘mobile home parks’ present our business. In a very real way, older MHPs represent a key image issue our industry faces.

Against this brief backdrop, let’s share one firm’s bold approach to transforming an older metropolitan area ‘mobile home park.’

About a decade ago, Chicago-based Capital First Realty, Inc acquired Sunset Village in upscale Glenview, IL. The ‘park’ was already some 40 years old at the time, with aging and obsolete mobile homes. Situated in an area that boasted half million dollar condos to the south, and new townhouses to the north that today sell for $750K to over 1M, this location by contrast was what then might be called a ‘war zone’ park. Police calls to this location where daily occurrences. This was the classic image of a true ‘tale of two cities.’

After the acquisition of Sunset Village, Capital First’s owner and president, Richard J. “Dick” Klarchek, began the first steps of dealing with the location’s many issues; all with the vision of transforming this dated location into an inviting environment of a truly modern residential subdivision.

The first steps included making arrangements to remove antiquated 10’ and 12’ wide homes from Sunset Village. Over 100 of these were hauled off or dismantled in the first few years. “The first phase of the plan was clean up, the next phase was to upgrade.” stated Capital First’s Chicagoland area manager, Jeff Jestus. “We’d studied the issues and talked about it at length. Finally, one day, Dick (Klarchek) called me up and said ‘Let’s get started at Sunset.’ That was it. We were off and running.”

In an area where mobile home parks where not viewed as popular or desirable, Capital First began assembling the team for the future of Sunset. Over the years, the high demand location has been managed professionally by manufactured home community veterans such as Tracy Helson and the management team of Jeff and Laura Grygiel. The Grygiel’s played a key role in the execution of the phased block-by-block upgrading of the homes at Sunset Village. “During my interview with the company, I mentioned that I liked a challenge.” Jeff Grygiel said. “Dick turned to the vice president and said, ‘Perfect! Let’s send them to Sunset!’ We got our challenge!” Grygiel said with a laugh.

By assembling a team of management, sales, maintenance, home builders, contractors, services suppliers, as well as the critical need for financial resources, Capital First has certainly made waves by closing an average of 50 sales annually at Sunset Village. “We’ve moved from being a mobile home park and have become a manufactured home community that provides our homeowners the atmosphere of a truly residential subdivision!” says a glowing manager Linda Beem. “We first took part of 3’d Street, near the front of the community, and transformed into our miniature version of the vision of what we wanted our future location to look like. When I’d show homes to prospects, I’d say, ‘Someday, all of Sunset Village will look like this.’ Some would reply, ‘call me when it does.’ But dozens of others every year literally bought into our vision.”

To appreciate what this contrast was back then and what it has become today, go to www.SunsetGlenview.com/page3.htm to see the ‘then and now’ photos.

“Our residents aren’t the only beneficiaries of this redevelopment process” explains Dick Klarchek. “The neighboring property owners in the multi-story condos or townhouses who look out their windows now see a community that is more like a conventional subdivision. It’s bound to help their resale values! Everyone –Sunset Village residents, local officials, political leaders and neighboring owners – everyone benefits from this process.”

Naturally, the process has not been without road bumps! But today, Klarchek’s Capital vision has resulted in a property redevelopment that is about 75% compete. The homesite count was deliberately reduced from 535 ‘lots’ to the present plan for 404 home sites, to allow for today’s larger homes and off street parking. Even with this reduction in sites, the firm has kept site fees in line with the area’s combined property tax rates and association assessment fees for conventional housing.

Because the property features modern floorplans with all finished drywall, 8’ to 9’ flat ceilings, ranch and Cape Cod style homes, housing comparisons made to prospects are against conventional construction; not against other industry players! What this means in practice is that a buyer can live for half the cost or less of conventional housing in the area, and still enjoy the benefits of living in prestigious Glenview with its superior schools and services. The Sunset Village MHC transformation has drawn positive newspaper coverage in the Chicago SunTimes Newsgroup.

Linda Beam’s enthusiasm for the lifestyle she offers prospects is uncontainable. “With our improvements and our new marketing approach, we now average over 10 new prospect calls a day. When people come and see our homes, they’re simply amazed at the quality and value. Everyday we get an opportunity to showcase and sell what is great about Manufactured Homes today!” Linda Beem said.

How can you top that for an enthusiastic conclusion to an industry article? Maybe it bears repeating! “Everyday we get an opportunity to showcase and sell what is great about Manufactured Homes today!” ##

L. A “Tony” Kovach started his career in Manufactured Homes in 1981. He has owned, operated, marketed and managed both retail and MHC based operations, including start ups, expansions and turnarounds. Kovach is the founder of the www.ABCsofFaith.com and www.TheWayandTheLight.com websites, and has helped launch this web ezine. You can contact him via email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it by cell at 832-689-1729. Comments on this article should be posted below.