Three Pillar Communities Announces First Manufactured Housing, RV Fund
With a goal of $10 million, the vehicle will focus on properties in the western U.S.
Three Pillar Communities has launched the company’s first fund, with a goal of $10 million. The minimum investment will be $50,000 and the company expects to deploy the fund’s capital in six to 12 months. The fund will target the acquisition and upgrade of manufactured housing communities and RV parks with a focus on the Western U.S. Assets and locations will include:
- 50 units in Sun Valley, Idaho;
- 40 units in Olympia, Wash.;
- 60 units in Roseburg, Ore.;
- 100 units in Denver;
- 200 units in the Pacific Northwest.
Despite still dealing with a unique image issue, the manufactured housing sector closed 2020 on a high note and this performance was not ignored by investors.
“Investors understand how well manufactured housing communities have performed during COVID-19, so people no longer see mobile home parks as a fringe asset class,” Daniel Weisfield, co-founder & principal of Three Pillar Communities, told Multi-Housing News. “Consumer demand for manufactured housing continues to outpace supply. Park valuations are at historic highs, but I expect they will continue to rise,” he added.
A particularity of the new fund is the company’s decision to invest in alternative value-add improvements such as bringing solar power to the mobile home parks in its portfolio. Three Pillar Communities built a $1.2 million solar power plant at one of the firm’s properties in Chico, Calif., and are planning a second one at a park in Bakersfield, Calif.