(PRWEB) JULY 22, 2015
“This marks the first acquisition in our 2015 mobile home park fund. It is very exciting to both have a few dozen accredited investors backing our partnership and co-owning parks with us, and to be able to reward them with such a strong initial acquisition. The property’s occupancy increased during our closing period, and we look forward to upgrading the quality of the mobile homes in the property. We acquired Desert Trails (http://www.DesertTrailsMHP.com) at a 10% cap rate, and specialize in improving this type of commercial property. We can’t make guarantees about profits, but feel we will likely generate a better than 50% annual return this first year for our limited partners. Many of our investors are becoming increasingly nervous about valuations in the public markets, and would prefer to invest in lower volatility real estate niches that still offer annual returns that are likely to be in the upper teens over a long-term holding period. Judging from some of the large manufactured housing REITs we estimate manufactured housing communities have a beta of around 0.65, and we feel PSP can generate consistent annual returns in the high-teens for our early co-investors. Also important to note is that this asset class is not correlated with stock markets or other real estate niches,” said Jefferson Lilly, Co-Founder of PSP.
“Park Street Partners is about more than just making money for our investors; we are increasing the supply of affordable housing for American families. We rehab and purchase mobile homes to fill vacancies, while improving property operations through professional management.” remarked Brad Johnson, Co-Founder of PSP.
“We were very happy to lend money on this acquisition because of Park Street Partners’ deep and focused experience in the manufactured housing industry. They specialize in improving mobile home park investments such as Desert Trails and we hope to work with them on subsequent acquisitions,” commented Tim Ostic, Branch President at FirsTier Banks.
About Park Street Partners
Park Street Partners is a private equity real estate investment firm (PERE). Our mission is both financial and social. We seek to deliver to our investors superior cash flow returns by acquiring and investing in undervalued and underperforming mobile home parks. We do this while helping to solve America’s affordable housing crisis by enabling families in the bottom 1/3 of income distribution to get out of the game of paying rent forever in apartment complexes, and into 3- or 4-bedroom mobile homes that they will own for as little as $550/month. Park Street Partners is actively raising capital from accredited investors and institutions to acquire additional manufactured housing communities through our 506 Reg. D fund. Information on how to co-own manufactured housing communities with us is available at http://www.parkstreetpartners.net/fund.