April 8, 2004

Mobile Home Park Owner News

Published by: Jim Carmichael

Wall Street Journal March 30, 2004


Mobile 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.


8174 Mall Rd
Florence, KY 41042
Phone: 859-371-9000
Fax: 859-371-6365
Cell: 859-801-0906
Email: jcarmichael@firstcommrealty.com 


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.