“You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur “
For Investors National Multifamily August 03, 2017 Champaign Williams, National Editor
Manufactured home communities have turned a corner for the better. Commonly referred to as “trailer parks,” these communities have evolved beyond the negative stigma that plagued them in the past. Many of these housing communities resemble high-end gated neighborhoods of affluence — and investors have taken note.
Once an overlooked sector in the housing market, manufactured home REITs have become one of Wall Street’s quietest moneymakers. National Association of Real Estate Investment Trusts data reveals these communities are rolling in returns that so far year-to-date are outpacing the S&P 500. From January to the end of July, the sector brought in 18.3% in returns, a rarity in the market. On an annual three-year basis, this small segment in the REIT market has averaged returns of 26.7%, according to NAREIT. Strong returns have been fueled by low building costs, strong supply and demand dynamics and a solid net operating income. “It is rare to find a segment that has double-digit returns, and so consistently,” NAREIT Senior Economist Calvin Schnure said. More than 20 million Americans live in manufactured homes, also known as mobile homes, and as the country continues to experience a housing crunch, demand in these communities is growing.
America is undergoing an extreme housing shortage. Though there is a great deal of supply underway this year — the largest number of new units under construction this cycle — those new deliveries are overwhelmingly concentrated in densely populated urban markets and they are extremely expensive. The multifamily sector is expected to have 320,000 new deliveries this year. Most of this supply will fall within a handful of the sector’s largest metros and all of these new apartments are on the high-end of the spectrum, according to Yardi research. Demand for low- to mid-scale housing, driven by blue-collar working Americans, is in full swing, but affordable supply is all but unavailable. Manufactured homes are aiding in residents’ search for affordable housing. Last year the average price for a manufactured home was roughly 10% to 30% less per square foot than traditional site-built homes, ranging between $50K to $90K for single- and double-wide units. “Certainly the manufactured housing sector is facing strong demand just given the challenges with the lack of availability of affordable housing, of any type of housing, in other places across the country,” Schnure said. Still, affordability is not the only thing about these communities that is fueling
Sun Communities Inc. and Equity Lifestyle Properties are two of the country’s largest publicly traded manufactured housing REITs. These trusts own and operate a combined 550 manufactured housing communities across the country, each owning an assortment of all-age and active senior living communities — though age-qualified communities make up the bulk of their portfolios. Far from rundown trailer parks, these communities feature resort-style amenities that include swimming pools, fitness centers, golf courses, playgrounds for children and more. “As with other property types, the REITs own higher properties so these are investment-grade communities they’ve created,” Schnure said. “Most of these can’t be in a downtown urban area, they don’t have the space for it. Many are spread pretty much all across the country. There are quite a few in the Southeast through Georgia and Florida, there are also some in the West in New Mexico, Nevada, California, Texas.” What Goes Up, Must Come Down
“The manufactured housing REIT sector is providing very good quality homes where people can live at an affordable rate and that provides a good return for investors. This is a win-win situation,” Schnure said. So far there have been 46,600 manufactured homes delivered this year, according to the U.S. Census Bureau. This number is up slightly from 2016, which delivered a total of 81,000 units. Within the last 60 years, the number of pre-fab homes to come online has decreased exponentially after peaking in the 1970s, then
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
Please call or text me on my cell: 520-975-5207 or send me an e-mail email@example.com
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
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