Mobile and Manufactured Homes Are Outperforming the Field in Commercial Real Estate
The commercial real estate market has had it woes over the past year and a half. Despite the uncertainty caused by the pandemic, mobile and manufactured home parks posted a 12% increase in property values since 2020 and are now a top-performing commercial real estate class. These parks have become a solution for quality and affordable housing for the average U.S. worker who is struggling to afford average one- and two-bedroom rental prices, according to the U.S. Department of Housing and Urban Development.
According to NorthMarq, the current manufactured housing occupancy rate is 93.3%, so it should be no surprise mobile and manufactured home investment has risen 20% since 2019. In a recent interview with Yahoo Finance, Midwest Park Capital, a private real estate investment firm with exclusive access to high-yield mobile home investments, said, “Our fundamental strategy is to assemble a diversified portfolio of low-risk, high cash-flow mobile home park assets with the goal of delivering capital preservation, consistent quarterly cash-on-cash income paired with equity growth. We achieve this objective by acquiring, then adding value or repositioning under-valued, mismanaged, sub-performing, or improperly capitalized income-producing assets.” We will continue to see more sophisticated investors look to turn the once modestly run mom-and-pop parks into high-yield residential investment opportunities.
Our Mobile Home Park product is exclusive to Devon Park Specialty. We offer general liability coverage for mobile and manufactured home park owners with up to 500 mobile homes/pads. We have no limitation on the percentage of owned homes rented to others, and we can consider accounts with pools, playgrounds, sports courts, etc. We also have a property solution for the common buildings, such as clubhouses, laundry buildings and maintenance garages.
Our product is designed to provide well-rounded and comprehensive coverage for this unique type of risk. Product features include:
- Liability rated on the number of pads as opposed to revenue
- Low minimum premiums
- No liability deductible
- Ability to add hired and non-owned auto liability in most states
- Up to $5 million in excess liability limits
As new players enter the mobile and manufactured home sector, it is imperative they obtain adequate and correct coverage to protect their investments.
Contact your Commercial Lines underwriter for more details about our Mobile Home product.
As always, thank you for your support and business.
Contact Michelle Ralston
Second Vice President, Team Leader | 888-523-5545, ext. 2015
Written by Bob Kane
September 2, 2021