Chicago-based Midwest Park Capital, a private real estate investment firm, has launched a $10 million fund. Midwest Park Capital Fund 1 LLC will target mobile home park assets.
CHICAGO (PRWEB) OCTOBER 26, 2020
Midwest Park Capital LLC (Midwest Park Capital), a private real estate investment firm providing investors with exclusive access to high-yield investments in the mobile home park vertical announcing the recent launch of its first investment Fund, Midwest Park Capital Fund 1 LLC (Fund 1). With the new $10 million Fund, Midwest Park Capital goal is to assemble a diversified portfolio of low-risk, high cash-flow mobile home park assets with the goal of delivering capital preservation, consistent quarterly cash-on-cash income paired with equity growth.
“Residents typically own their mobile homes but rent the property from the park owners. Mobile homes aren’t really all that mobile, most homeowners tend to sell rather than move them which contributes to the stability of the cash flow of mobile home parks. There are still about 92% of mom and pop owners meaning its an industry ripe for disruption and acquisition,” comments the Fund Co Manager Jonathan Tuttle.
Mr. Tuttle continued with “Mobile home parks have the lowest failure rate of all commercial real estate investments over the past 50 years, and have been one of the top (if not the top) performing real estate asset class during the current COVID situation based on bank lending data.”
Fund Co Manager Cristian E. Dukes “The goal of this Fund is to help solve the affordable housing crisis for everyday Americans, while providing strong and stable returns for our accredited investor partners.”
The Fund intends to provide both current income and longer-term projected gain for Fund investors through acquiring and operating a portfolio of income-producing mobile home communities and mobile home parks In the United States.
Approximately 22 million Americans (about 8% of the population) live in mobile home parks. The market for mobile home parks is highly fragmented with a majority owned by mom and pop owners. The Fund believes there is a strong, growing demand for rental sites in mobile home communities as nearly 60 million Americans need affordable housing.
Affordable housing in the United States is in constant demand, regardless of the country being in a high-growth period, when homebuilding lags behind job growth, or during economic downturns. Additionally, job losses or foreclosures increase the demand for rentals and lower-cost affordable housing. After a property is acquired, the Fund will evaluate and make capital improvements to its infrastructure, as well as common facilities, in order to maximize the projected return from the property.
About Midwest Park Capital, LLC
The Fund’s Management team intends to rigorously research and evaluate potential investment opportunities. Mr. Tuttle’s experience with income-producing properties, relationships within the mobile home park industry and with third-party operators should enable the Fund to identify favorable investment opportunities.
Midwest Park Capital’s approach is founded with an unparalleled commitment to excellence, integrity, and creativity to its investors and the communities they acquire. Leveraging a strong network of industry partners along with operational partners, they are here to help be a solution to the affordable housing crisis in America, while generating attractive risk adjusted returns over a long term holding period to its accredited investors.
For additional information, visit Midwest Park Capital’s website at http://www.MidwestParkCapitalFund.com