Hamilton Point Investments has an extensive track record of acquiring and operating multi-family apartment properties. HPI MHC Fund XI will focus on investments in manufactured housing communities (MHCs), a sector which South Coast believes shares similar characteristics to the multi-family market and has the potential to generate attractive returns through recession-resistant rental housing.
HPI’s strategy with MHCs is to purchase from smaller owner/operators that are under-capitalized and under-managed. The fund will add value through operational expertise and seek to increase net operating income by targeting parks where it can develop empty sites and/or vacant land on which to expand and put new manufactured homes. The exit strategy is to assemble a portfolio of MHCs that would be attractive to a larger institutional buyer.
Since 2010, HPI has taken 14 multi-family programs full cycle, each within a 5-year holding period, with annualized IRRs between 14.30% and 21.20%. HPI MHC Fund XI is a $50m offering (expandable to $75m) currently paying a 6% tax-advantaged annual distribution rate with an anticipated hold time of 4-6 years. Minimum investment is $50,000 for accredited investors only.
Join us for a discussion on how South Coast has partnered with Hamilton Point Investments to take advantage of the current opportunity in manufactured housing communities.