For Immediate Release
Tampa, FL. (September 25, 2024) – MH Estates Capital Partners LLC, a private equity investment firm and its principals, Major M. Hillard IV, Bonnie Hillard, and Lawrence J. Hoffman, are pleased to announce the launching of MH Estates Manufactured Home Communities Fund LLC (the “Fund”).
“Our strategy is to apply our decades of experience and disciplined management processes in acquiring the right manufactured home communities (MHCs) that provide attractive investor returns” comments president and CEO, Major Hillard. “We add value through our innovative acquisition strategy, redevelopment, leasing, operational management, and highly transparent investment management approach.”
The Fund will invest in a diversified portfolio of manufactured home communities (MHCs) principally in the Southeast and southern Midwest regions of the United States. Our plan is to employ the capital of the fund within its first two years to acquire the MHCs, look to refinance the original acquisition debt within 24-36 months after we have added value through redevelopment, improved management, increased occupancy, and increased rent, among other proven strategies. After we have increased value and net operating income, we will look to exit our investment within 60-72 months.
The Fund is targeting up to $10 million with an expanded offering up to $30 million. We received tremendous pre-launch interest in the fund and were able to already close our minimum of $1 million with commitments in excess of this amount. We, the principals, have committed to invest between $800,000 to $1.0 million. Some of the Fund’s terms are as follows:
- Accredited Investors Only
- Minimum Investment: $50,000 ($1,000 per unit/50 units)
- Early Investor Bonus:
- 10% (units) if invest by the earlier of (i) October 31, 2024 or (ii) total investments equal $15,000,000
- 5% (units) if invest by the earlier of (i) December 31, 2024 or (ii) total investments equal $15,000,000
For example, a Class A Investor who invests $100,000 prior to October 31, 2024, will receive 110 units instead of 100 units.
- Preference Return: 9.0% cumulative, non-compounded, accrued
- Distributions:
- First, return of contributed capital
- Second, accrued preferred return
- Then, 70% to investors, 30% to Sponsor/Manager
- Targeted Returns:
- Internal Rate of Return(net): 17%-18%
- Equity Multiple (net): 2.0x-2.5x
The MHC sector of the real estate industry is an excellent asset class during market shifts and has proven to be a very recession-resistant investment.
“The United States currently has an affordable housing crisis” conveys Lawrence Hoffman, Chief Financial Officer of MH Estates Capital Partners LLC. “The American Dream for individuals and families with affordable home ownership is out of reach. We want to help solve this crisis by providing high quality, well-managed manufactured home communities. Our decade long track record has fulfilled this mission while generating attractive returns to our investment partners.”
About MH Estates Capital Partners LLC
MH Estates Capital Partners LLC is a real estate investment company that focuses on acquiring, developing, operating and selling manufactured home communities principally in the Southeast and southern Midwest regions of the United States. MH Estates Capital Partners LLC is affiliated with MH Estates LLC, our property manager, Manufactured Home Outlet LLC, our manufactured home dealership, and our soon to be manufactured home financing entity Vivo Finance LLC, bringing together a fully vertically integrated group of companies serving the Manufactured Home Community sector. This is a unique management combination in the MHC sector. For more information about MH Estates Capital Partners LLC visit www.mhestatescapitalpartners.com.
Major M. Hillard, IV
Manager & President
M: (804) 314-1788
Email: [email protected]
Notice to Readers
The information provided in this press release is based upon our current expectations, plans, estimates, projections, forecasts, assumptions and beliefs that involve numerous risks and uncertainties, and we caution that such information is not guaranteed. All of the expectations, plans, estimates, projections, forecasts, assumptions and beliefs involve judgment with respect to factors which are difficult to predict and many of which are beyond our control. Such information may be subject to change or modification at or prior to closing for any reason. Because of the number and range of variables involved in making such estimates and projections, there is no assurance that they will be attained. The assumptions may have an effect upon all other assumptions and the ultimate result of any projection. Such interdependence and effects require careful analysis; for example, the interrelationship among variables may result in a decrease of profitability despite increases in certain circumstances. The success and implementation of our business plans are dependent upon many factors, many of which are beyond our control. Any of the expectations, plans, estimates, projections, forecasts, assumptions and beliefs could be inaccurate and you are cautioned not to place undue reliance on any such information. Except as required by applicable law, we undertake no obligation to update or revise any such information after the date of this press release, whether as a result of new information, future events, changed circumstances, or any other reason. Due to these significant uncertainties, the inclusion of such information should not be regarded as a representation by us or any other person that we will achieve the objectives and plans set forth in this presentation.
The financial projections contained herein, in any offering documents, and otherwise provided to potential investors were not prepared with a view to compliance with the published guidelines of the Securities and Exchange Commission or the guidelines established by the American Institute of Certified Public Accountants regarding projections or forecasts. Our projections are subjective in many respects and thus susceptible to various interpretations and periodic revisions based on actual experience and business developments. We assume no responsibility for the accuracy of any of the projections.
THERE CAN BE NO ASSURANCE THAT PROJECTED RESULTS CAN OR WILL BE REALIZED OR THAT ACTUAL RESULTS WILL NOT BE MATERIALLY DIFFERENT FROM THOSE PROJECTED. ALL INVESTORS ARE CAUTIONED THAT PROJECTIONS ARE INHERENTLY SPECULATIVE AND MERELY ILLUSTRATIVE OF RESULTS WHICH MAY OR MAY NOT BE ACHIEVED UNDER THE ASSUMPTIONS USED IN PREPARING THE PROJECTIONS AND ARE NOT INTENDED TO BE, AND SHOULD NOT BE RELIED UPON AS, AN INDICATION OR PREDICTION OF FUTURE RESULTS.
WE STRONGLY URGE ALL POTENTIAL INVESTORS TO SEEK THE ADVICE OF THEIR LEGAL, FINANCIAL AND ACCOUNTING ADVISORS. THE INTERPRETATION OF FINANCIAL PROJECTIONS IS COMPLICATED. UNLESS POTENTIAL INVESTORS ARE FAMILIAR WITH THE TYPE OF FINANCIAL PROJECTIONS PRESENTED, EACH POTENTIAL INVESTOR IS URGED TO SEEK THE ADVICE OF THEIR ACCOUNTING AND FINANCIAL ADVISORS BEFORE TRYING TO INTERPRET OUR FINANCIAL PROJECTIONS.