Hot commodity: Investors bet on mobile home parks

Sales volume increased 23% in the second quarter, year-over-year

National Weekend Edition /
Sep.September 05, 2020 12:00 PM
(iStock)

(iStock)

As returns fade and uncertainty reigns in traditional commercial real estate sectors, investors are moving money into mobile home parks.

More than $800 million worth of mobile home parks traded during the second quarter, according to Bloomberg. That’s 23 percent more than the volume sold in the second quarter of 2019.

Meanwhile, total commercial trades declined 68 percent year-over-year in the second quarter to $45 billion. During April — so far the worst month economically of the coronavirus pandemic — deal volume fell 71 percent year-over-year, or by $11 billion. Not a single commercial property type saw an increase in sales volume.

Investors are willing to pay more for property leased to mobile home owners than they were last year. Valuations of those properties were up 26 percent, year-over-year, in the second quarter.

Institutional investors accounted for 28 percent of the deals, according to JLL. That’s the largest share since the firm started tracking mobile home park deals a decade ago.

JLL’s Scott Belsky said that mobile home parks generate stable returns for investors because residents usually own their own homes and rent the ground they’re on.

Single-family rentals and the companies that invest in them are also attracting a ton of capital.

JPMorgan Chase more than doubled its investment in American Homes 4 Rent to $625 million in May.

Koch Industries made a $200 million preferred-equity investment in Amherst Holdings’ single-family rental business. And Invitation Homes plans to double its portfolio of single-family rentals. [Bloomberg] — Dennis Lynch 


Related Articles

arrow_forward_ios
New Philippine tax on foreign gaming companies could deal another blow to office market
New Philippine tax on foreign gaming companies could deal another blow to office market
New Philippine tax on foreign gaming companies could deal another blow to office market
Office workers in major cities reach pandemic-best return rates
Office workers in major cities reach pandemic-best return rates
Office workers in major cities reach pandemic-best return rates
Office tenants nationwide are touring buildings at record numbers for the pandemic (Getty)
Tenants rushing back to tour offices, but things still far from normal
Tenants rushing back to tour offices, but things still far from normal
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
Nearly 100K homes sold across UK in August ahead of tax break expiration
Eviction Notices (iStock)
Westchester County leads state in evictions outside NYC
Westchester County leads state in evictions outside NYC
New York state is also contributing $125 million toward rent relief from the budget. (iStock)
On Long Island, family of 4 earning $156K qualifies for rental assistance
On Long Island, family of 4 earning $156K qualifies for rental assistance
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
US office investment market remains well below 2019 levels
US office investment market remains well below 2019 levels
US office investment market remains well below 2019 levels
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...