Family Mobile Home Parks in Daytona Beach, Fl

Two out-of-state investment companies have teamed upwardly to acquire a pair of 55-and-older manufactured dwelling communities in Port Orange and take put another one, The Falls mobile dwelling house park in Ormond Beach, under contract.

The trio of deals are expected to top $170 meg.

Bob Miller, the CEO of Cleveland, Tennessee-based MHM Communities, confirmed that his visitor and Glen Allen, Virginia-based Upper-case letter Square 1031 are the new owners of the Maplewood Estates and neighboring Treasure Isle Estates communities on Spruce Creek Road.

"Nosotros're joint venture partners. I'm the operating partner," Miller said of the entity created to acquire the 2 Port Orange communities for merely under $53 million.

Miller confirmed that the joint venture also signed a contract to buy The Falls at Ormond at 105 Clyde Morris Blvd., only said he was barred past a nondisclosure agreement from discussing details until the sale closes.

The community is betwixt Manus Avenue and West Granada Boulevard and was built in 1984, according to mhvillage.com, an contained web site that lists homes for sale at mobile dwelling house parks.

The community is currently owned by the family unit that owns Jacobsen Homes, a Safety Harbor-based manufacturer of modular homes. Many if not all the homes listed for resale at The Falls were made by Jacobsen Homes.

Mobile dwelling house park may sell for over $120 million

Patricia Keough-Wilson, a board member for the statewide Federation of Manufactured Home Owners of Florida, said she heard that The Falls is selling for $128 million.

Frank Valenti, 72, president of the homeowners association at The Falls, said his agreement is that the community is selling for more than $120 one thousand thousand, merely did not know the specific corporeality.

"I've heard rumors that the sale price could exist anywhere in the $120s, merely I have no specific know of a number," he said. "I've also been told that the sale is expected to close past mid-December."

A auction toll of more $120 one thousand thousand would be a new record for the virtually ever paid for a unmarried existent manor property in Volusia County history.

The current record is the $96 million paid in July by Northwestern Mutual for the Aberdeen at Ormond Beach 55-and-older manufactured home community less than a mile downwards the street.

The 300-acre Aberdeen community has 533 home sites while 141-acre The Falls has 599.

Prior to July, the county'south previous record for highest amount paid for a single real estate property was the $64 meg that Tennessee-based CBL & Associates Backdrop paid in 2004 to acquire Volusia Mall in Daytona Embankment.

The Maplewood Estates and the neighboring Treasure Isle Estates in Port Orangish were sold Sept. 17, according to county property records.

Maplewood Estates has 272 business firm lots, while Treasure Isle Estates has 150. The combined size of the ii communities is 77 acres.

The principal seller of Maplewood Estates and Treasure Isle Estates was Andy Clark, owner and CEO of Port Orange-based All Aboard Properties. The sellers for Maplewood Estates included his late male parent's trust, while the bargain for Treasure Isle Estates included $5 million paid separately to another local family that owned the land, but not the community itself.

"Manufactured housing a hot commodity"

The real manor transactions are part of a growing national tendency of institutional investors acquiring 55-and-older manufactured home communities.

"Manufactured housing is no longer about mobility, but about affordability," according to a Feb. 7, 2020, article published past The Financial Times. "These homes look pretty much like your typical ranch house but, depending on where yous might alive, they might price one-half the price. This makes manufactured housing a hot commodity."

Bob Miller of MHM Communities said the tendency of institutional investors acquiring 55-and-older mobile home parks is "a consolidation of our manufacture that'southward actually been going on for the past 20 years. (Before that) an awful lot of these communities were endemic by families.

"Information technology'due south a natural progression. It infuses new upper-case letter into these communities that's good for everyone."

Miller said his company and Uppercase Square see Daytona Beach, Ormond Embankment and Port Orange as "bully markets with a potent retirement base."

He added that the 2 companies could larn more 55-plus manufactured habitation communities in the expanse, but said, "in that location are no others at this fourth dimension that we can discuss. You're going to be looking for synergies (past owning multiple communities in the same area)."

Miller said MHM Communities and Capital Foursquare acquire 55-plus manufactured home communities as long-term investments. They besides look to increment the value of their backdrop by making improvements to enhance the quality of life for residents.

"Our strategy is to upgrade, renovate and add together amenities that are more than desirable today and that tin improve the social dynamic in the communities," he said. "We get people asking us to add amenities such as pickleball (courts) and canis familiaris parks."

A recent online search for manufactured homes for resale in Port Orange produced listings ranging in price from $9,900 to as high as $225,000. The website mhvillage.com  listed 35 homes for resale in The Falls. The listings ranged in cost from $17,000 to $79,900.

Rental fees to rise

The price of manufactured homes does not include the monthly rental fees charged at mobile home parks for the home sites.

The current rental rate for home sites at Maplewood Estates is $547 a calendar month, said Sweeney.

"The new owners said it's going to go upward to $600 a month on the commencement of the year, but that will include lawn maintenance, which was a separate cost for residents before that was left up to each homeowner to adapt," he said. "In Apr (2021), they also plan on going upwards another $20 (a month) for real manor taxes which we didn't get charged earlier."

Valenti guesses the electric current average rental rate at The Falls at Ormond to be effectually $850 to $900 a month, which includes lawn maintenance service. He did not know how much rental rates volition go upwardly, if at all, nether the new owners.

"Our rents would be scheduled to change on Sept. i, 2021, whether it exist the electric current owners if they didn't sell or the soon-to-be new owners" Valenti said.

"We will negotiate with management prior to that engagement." he said.

Miller recently met with Maplewood Estates and Treasure Island Estates residents. He told them some of the improvements planned for the communities. Both were congenital in the mid-1970s.

"Everybody left happy. Nosotros all clapped," said Sandra Wolf, treasurer of the Maplewood Estates Home Owners Association. "I like them. They've washed what they've said so far. I think they're going to be good."

Maplewood Estates had simply 16 vacant firm lots every bit of the end of Oct, according to Pat Sweeney, HOA president. Treasure Isle Estates had "three or four" vacancies at the time of its auction, according to Andy Clark.

Capital Square's website already lists the two Port Orangish communities as a single property under the Maplewood Estates name. It describes it as a "riverfront customs" with 412 home sites that are 95% occupied.

"Capital Foursquare intends to make $3.iii million of strategic improvements," a video on the company's website states. The improvements are "significantly enhancing the quality also as increasing occupancy, rents, and, ultimately, property value."

Uppercase Foursquare recently announced a private placement offer to investors called CS1031 Maplewood Estates MHC, DST. The company seeks to raise $38.6 million in disinterestedness from accredited investors with a minimum investment of $50,000.

"(Maplewood Estates) is Capital Foursquare'due south tertiary acquisition of a 55+, four- and 5-star manufactured housing customs in a coastal market of Florida," said Louis Rogers, CEO of Capital Square, in the news release. "These are some of the well-nigh desirable assets in the country, highly sought subsequently past institutional investors."

Clark said "Capital letter Foursquare has the wherewithal to take (Maplewood Estates and Treasure Isle Estates) to the next level. I wholeheartedly agree with their plans for the (mobile home) parks. If I kept them, I would have wanted to eventually make those improvements. They're merely able to do them faster than I could."

Sweeney said the so-called "river" is really an unnamed canal that feeds into Bandbox Creek and Rose Bay.

"Part of the park is waterfront, it's true," said Sweeney. "The new owners plan on utilizing some of the vacant lots to add together a dog park and different activities (for residents)," he said, "They besides plan on remodeling the clubhouse including the kitchen. Every ane of the homes (at Maplewood Estates) will take brick pavers installed to supersede the physical driveways at no cost to residents."

"I call back in the end when nosotros see all the changes that they (the new owners) are anticipating things volition be better," Sweeney said.

"The new owners plan on having a first-right-of-refusal on your dwelling," he added. "They want to exist able to counter offering (when residents go a serious offering to sell to someone else) and then they tin can plough around and either upgrade the house by doing major repairs or replace it all together."

Miller acknowledged it is normal for residents of 55-and-older communities that have changed owners to be concerned virtually steep rent increases.

That isn't what MHM Communities and Capital Foursquare do, he said.

"We take a very ho-hum and stable approach to what we call our legacy, or existing, residents," Miller said. "If it takes half-dozen to x years to become up to market rates, that'due south OK.

"These communities accept a natural turnover charge per unit that allows us to bring in new residents who can start at market charge per unit rents without our having to put (sudden large rent increases) on the backs of existing residents," he said. "You have to keep rent increases (for existing residents) very gradual and piece of cake.

"We'll also larn older homes that are dragging downwardly the community and replace them with new ones that can bring the value of other existing homes up. What'south unhealthy is when nobody reinvests in the customs and home values go down to where residents tin can't sell their homes because they aren't worth much."

Residents mixed on sale

Sweeney, 67, has been a resident at Maplewood Estates the by 20 years. He moved there in his belatedly 40s to alive with his elderly mother who is now deceased. "Hopefully I'll live the rest of my life here," he said.

"Andy's Dad was a good owner. He ran the park with a stern hand, but if you followed the rules, he didn't bother yous," Sweeney said of the late Douglas Clark who died in a airplane crash in 2009.

Douglas Clark and a then-business partner adult Maplewood Estates in the mid-1970s. When the partnership broke upwards, the senior Clark and his son Andy wound upwards becoming sole owners.

Andy Clark separately bought Treasure Isle Estates in 2007. The community was congenital around the aforementioned time as Maplewood Estates.

Sweeney praised Andy Clark every bit "a good possessor who ran Maplewood Estates with his center, not his wallet. There are always constant complainers, merely now those (Maplewood Estates) residents are wishing Andy was still here."

"Information technology'south squeamish that they (MHM Communities and Upper-case letter Square) practise the upgrades, but a lot of them effigy (55-and-older mobile home parks) to exist cash cows," said Sweeney. "The problem (for residents) on a stock-still income, how much can you lot take from us?"

Frank Valenti of The Falls HOA sounded a more hopeful note.

"Everything Bob Miller has said so far has been promising in terms of what he wants to do with the park. His plans seem like they will meliorate the amenities of the park and also meliorate the quality of life of the residents," he said.

"What makes the development as adept every bit it is, though, is the people. We have a groovy group of residents who are there for each other and help each other when needed. What more can y'all ask?"

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Source: https://www.news-journalonline.com/story/business/real-estate/2020/11/29/investors-buying-daytona-beach-area-55-and-older-mobile-home-parks/3755392001/

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