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Home Park Owner News Wall
Street Journal March 30, 2004
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Home Industry Tries To Haul Itself out of Big Slump
If
you haven't had a chance to read this Front Page article, you need to. If you
need a copy, email or call me and I will get it to you. But the heart of the
matter deals with some history of our industry and how it's got into its
current status.
It is well
written and has some good contributions from industry professionals. Mr.
Buffet's acquisition of Clayton and its subsequent offer to buy Oakwood out of
bankruptcy is highlighted as well. And probably why we are finally getting some
positive, honest attention.
What
do you think?
Good
News … I Think
Does
the rate of incoming/outgoing tenants seem to have leveled off? Maybe even
gaining more than losing?
I think the bottom has leveled off. AND THAT IS GOOD NEWS !!!
If past trends are any indication of the future, then the slow climb back
to a normal (5%-10%) vacancy should begin very soon. You will only need to
weather the storm two to three more years. I still think the market will settle for the senior and upscale family communities first. There will be more retirees than new families in the near future. As an investor/owner wanting to maximize their return and future profit, you need to consider this. Current
Market Trends
Not a lot has changed in the last six months really. The wait and see
mentality has really hunkered down. Lenders are looking at CAP rates in the
nines for a 'B' park. Communities with park owned homes are in the 14%-16%
CAP range.
I am seeing some buyers that know the reality of the market looking for
turnaround properties. But it all boils down to real, verifiable numbers. The
buyers are definitely there.
If you have reached the point where you are considering selling, call Jim
Carmichael for a free analysis of your community. Good
News
If
you think you can wait, you will miss the opportunity. I believe senior parks
and upscale family parks will sell in the 7% -8% CAP range very soon.
Why? Because when analyst looks back on this period they will see the
stability of these types of communities. These properties will demand and
receive a much higher price.
But again, the
tide is turning. It won't be long for things to return to some sense of
normalcy. And MHP being the apple of investor's eyes. Reader
Input
Is there any topic you would like to see covered in this quarterly
publication? Our new format allows us four pages to use. Contributing writers
are welcomed. We are also considering selling some ad spots. Now that we are
reaching a broad audience, I think it would be a valuable tool.
If you have any interest in the above email me or call me at my office. First
Commercial Realty, Inc.
Our goal is to help our clients find the best property in
the best location that will maximize their return.
Celebrating
our 25th year in business, FIRST COMMERCIAL REALTY, INC.
services our client's needs in the areas of sales, leasing,
development, investments, site selection, & buyer/tenant representation. Our
agents specialize in their
particular field of expertise.
These 25 years of experience, creating good investments for our clients,
giving the best service and analyzing the total deal, is
what we have to offer you. Anybody can sell a listing and get it financed, but
does the deal make sense? We sell
and lease shopping centers, office complexes and warehouses working with
developers and users as well as listing and selling income producing investment
property. We are "dealmakers".
A lot of our business is
repeat because we do what's right. First Commercial Realty is licensed
in Kentucky, Ohio, and Indiana.
Some of our Northern Kentucky clients have included CVS, Turfway Retail
Center, anchored
by Sam's Club and Wal-Mart; Cinergy Plant; Willis Music, McDonald's, Cracker
Barrel Restaurants, Applebee's, Microtel, Super 8, Motel 6, Courtyard by
Marriott, Kinko Copies, Burger King, Subway, Burlington Health Care and many
others.
First
Commercial Realty is a continuum of self-motivated hard work and we enjoy
helping clients achieve their investment goals. We believe in the ethics and
moral responsibility that goes along with being a real estate broker. We would
like to help you find your commercial real estate.
If
you are selling your property, expanding your business, seeking a new location
or looking for investment property in Kentucky, Ohio or Indiana, you need one of
our dedicated commercial real estate professionals to represent you.
If
you are looking for a career change, please ask about our mentorship program.
F1RST
8174 Mall Rd
Phone: 859-371-9000 WE ARE NOW ON THE WEB AT
Celebrating our 25th year of
Professional Service
Jim Carmichael has been in the manufactured housing industry for over 11
years. He has spent time in retail sales with Oakwood and Clayton and later
managed a sales center for Clayton in North Carolina.
Jim has a unique perspective of community ownership. He knows where the
homes come from and who lives in a MHP. He has devoted the last several years to
learning the operation of communities and what investors look for. Proficient at the 1031 process, Jim will help you after the sale as well.
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