52TEN, a private real estate investment firm, is pleased to announce its second income and growth fund built around recession-resistant mobile home communities. This second fund, called “52TEN Fund II,” will focus on larger, higher-quality properties, with the underlying belief that quality will outperform less expensive assets over the long term.
Fund II will acquire mobile home communities with upside potential in markets where population and demand for affordable housing are increasing. The primary geographic target will be cities in the Sun Belt, which are growing faster than the rest of the United States and experiencing a greater shortage of affordable housing. Once acquired, the fund will add value by optimizing performance and therefore forcing the appreciation of each property, while distributing cash flow to investors over the life of the fund.
“Fund II will build on the success of Fund I,” said Nate Pattee, 52TEN co-founder. “Our existing portfolio in Fund I is outperforming projections, and we look forward to repeating that success as we build a quality portfolio for Fund II.”
Even before the pandemic, the U.S. was in an affordable housing crisis. As home prices and rental rates continue to grow faster than wages, the supply of affordable housing is shrinking at an alarming rate. This dynamic creates the highest demand in history for the most affordable housing option: mobile homes.
The high demand for affordable housing and the recession-resistant behavior of mobile home communities have attracted institutional buyers. Some of the largest investment groups in the world, including Sam Zell’s, Blackstone, the Carlyle Group, and even foreign investment funds, are buying up communities at a blistering pace.
“Mobile home communities have emerged as one of the top-performing investments in America,” said Jack Martin, 52TEN co-founder and head of investor relations. “What was once primarily a ‘mom and pop’ asset and the target of negative stereotypes is now the darling of real estate, and we are watching a rapid transition to institutional ownership.”
A Window of Opportunity
As institutional buyers capture market share, the window of opportunity to acquire larger communities in quality locations is closing. During this transition of ownership, 52TEN aims to leverage its experience and unique approach to build a quality portfolio for Fund II.
As a 506(c) Reg D offering, Fund II will be open to accredited investors and will accept capital contributions up to an aggregate amount of $30 million. Through Fund II, investors can gain exposure to mobile home communities with an experienced sponsor who is adept at finding high-quality, value-add properties, repositioning them, and delivering a best-in-class investment experience.
52TEN is an Arizona-based private real estate investment firm verified by Verivest. Co-founded by Jack Martin and Nate Pattee, 52TEN takes a unique approach, partnering with investors through recession-resistant mobile home communities to maximize yield while minimizing risk. By combining a lower-risk strategy with unparalleled transparency and a disciplined business approach, the firm provides a comfortable investment and the best experience in the industry.