COMPANY OVERVIEW
Colony Parks is a fully integrated owner of manufactured housing communities nationwide with a commitment to providing its residents high quality affordable housing in a safe, family-friendly environment.
Founded in 2017 and headquartered in Newport Beach, CA, Colony Parks has redefined mobile home park operations and investment by showing a relentless commitment to exceptional customer service and creative business strategy.
Colony Parks is rapidly growing with 1,360 lots under management and a robust pipeline of MHP closings on the horizon.
The United States is facing an affordable housing crisis, making home ownership for millions of Americans out of reach. Colony Parks is committed to doing its part by providing its residents the opportunity to own their own home at an affordable price in a community they can be proud of.
INVESTMENT THESIS
Why Invest in Mobile Home Parks (“MHPs”)?
Covered Land Play
MHPs are excellent covered land play investments as they are typically accompanied by an abundance of land. This gives an investor the ability to enjoy strong existing cash flow or to re-develop the site to its highest and best use in the future.
Low-Cost Basis Per Unit
MHPs allow an investor to acquire more units for less money. Most MHP owners only own the land and not the mobile homes themselves. This allows them to be able to buy more volume for less. In a market where the average cost per apartment unit is $130K, it’s not uncommon to find MHPs for $30K - $50K per lot.
Unique Tax Advantages including Accelerated Depreciation
When buying an MHP, typically you are only buying land and infrastructure with minimal above ground improvements. This unique combination makes MHPs one of the best tax shelters available of any real estate investment.
Favorable Long-Term Debt
From institutional lenders (Fannie Mae, Freddie Mac, and CMBS) to local banks and credit unions, most lenders view MHPs as highly desirable and financeable. Institutional lenders typically offer non-recourse 10-Year fixed financing at 4.75% - 5.75% for up to 75% loan-to-value (“LTV”), usually with at least 5 years of interest only. Local banks and credit unions usually offer 5-Year fixed financing between 5% - 6% up to 70% LTV, but these loans are almost always full recourse.
Low Maintenance
When buying an MHP, an investor is typically buying the land and leasing the individual lots to tenant’s who already own their mobile home. The tenant is responsible for the repair and maintenance of their home while the landlord is responsible for upkeep of the common area. This model keeps maintenance costs significantly below that of multifamily apartment buildings.
COLONY PARKS LEADERSHIP
Eric Wohl
Founder & CEO
ACQUISITION CRITERIA
Colony Park’s investment platform unlocks value utilizing unparalleled product knowledge and operational efficiencies.
Our acquisition criteria are as follows:
| PRODUCT TYPE: | Mobile Home Parks |
| RISK PROFILE: | Value-Add, Stabilized |
| GEOGRAPHY: | Nationwide |
| PROPERTY SIZE: | 50 Lot Minimum |
| UTILITIES: | Public Preferred; Septic & Well Considered; No Treatment Plants |
| OCCUPANCY: | 50%+ |
| DEMOGRAPHICS: | Growth Markets; Average Single Family Home Price of $120,000 or More |
| DEAL SIZE: | $1,000,000 - $100,000,000 |
Through exceptional relationships with brokers, owners, lenders, and industry partners, Colony Parks is able identify unique off-market investment opportunities in strategic growth markets across the country.
To submit an opportunity, please email us at info@colonyparks.com
BROKERS
Strong broker relationships are an essential component to Colony Park’s success. For this reason we are proud to offer a multitude of loyalty and incentive offerings exclusively to our broker network.
GRAND WAILEA MAUI
Brokers will receive a one-week, all expenses paid trip to the Grand Wailea Maui (or price comparable destination) for two people on any deal they sell Colony Parks valued at $5,000,000 or more.
BROKER INVESTMENT PLATFORM
Colony Parks encourages brokers to invest in the properties they sell us. Through this program brokers can invest some or all of their commissions into the deal allowing them to participate in strong returns and long-term real estate ownership without the risk of taking on personal debt.
LISTING RESALE
Colony Parks rewards qualified brokers who bring us deals the exclusive opportunity to list and sell the property, should we decide to sell in the future. Qualified brokers include those with the proper experience, platform, and background in the market where the asset is located.
