WEST PALM BEACH, Fla., May 30, 2023 (GLOBE NEWSWIRE) -- Madison Ventures+ (“MV+”), a private/venture equity boutique that combines capital investment with hands-on collaboration, announced today the launch of M2 Communities (“M2C”), a new MV+ investment platform designed to help combat the affordable housing crisis in key high-growth markets, while capitalizing on the investment potential of Manufactured Housing Communities (“MHC”), the most stable real estate asset class. M2C will focus its acquisition efforts in high-net migration markets in the Southeastern quadrant of the United States.
“Despite the country’s need for more affordable housing, and MHC’s status as the most affordable form of non-government subsidized housing, manufactured housing has been somewhat ignored by many sophisticated real estate investors,” said Bryan Gordon, Chairman and CEO of MV+ and M2C. “In fact, there have only been about 10 new manufactured housing communities built in the past two decades, and far more than that have gone dark due to redevelopment. The reality is, there is great opportunity in manufactured housing communities, and this is precisely the type of housing investment needed today.”
Manufactured housing is a home unit constructed entirely off-site at factories prior to being moved to a piece of property. The cost of construction per square foot is considerably less for manufactured housing than for traditional homes constructed onsite. Over the years, the housing option has often been derided, but advancements in technology and building materials mean today’s manufactured housing bears little resemblance to the “mobile homes” of the past.
“As an investment, MHCs have always been and remain one of the most stable, recession-resistant real estate asset classes. Basically, this real estate class has not lost any money even in past recessions,” Gordon said. “We believe that now is the absolute perfect time to reinvigorate manufactured housing communities due to a combination of factors.”
Economic challenges, a worsening housing crisis and improved building quality are combining to create the best market in decades for manufactured housing communities. Private MHCs are projected to be the top-performing real estate asset class over the next five years, according to Green Street Advisors. With a U.S. housing shortfall of more than 5.8 million homes and rental costs skyrocketing, MHCs are becoming an increasingly popular option. M2C will focus its investments in states experiencing a high number of “transplants,” with initial emphasis on Florida, Georgia, Tennessee, Alabama, North Carolina, South Carolina, Virginia, Texas and Oklahoma.
“Many people think that the affordable housing crisis only affects large urban areas, but it is truly a need everywhere,” Gordon said. “There are rapidly growing populations in these states and each is grappling with how to accommodate the influx of new residents.”
San Diego-based Muskoka Capital Partners is partnering with MV+ on the new investment platform and its founder, T.K. Frantz, will serve as President and Chief Investment Officer for M2C. Focused exclusively on recession-resistant property types, Muskoka Capital Partners is embedded in the analysis of long-term demographic trends. Its leadership team has a combined 66 years of real estate and capital markets experience focused primarily on multifamily, self storage, industrial and manufactured housing community property types – the top four performing commercial real estate property types over the past 25 years.
“I cannot think of a better time than now to help renew the promise of manufactured housing communities,” Frantz said. “The affordability these communities offer, combined with the advancements in building technology and materials make them incredibly attractive. By concentrating M2C’s efforts on those areas with a high migration rate, we will be able to impact communities where it is most needed.”
For more information or to schedule an interview with Bryan Gordon, contact Jim Dissett at jim@the9thblock.com.
About Madison Ventures +
Madison Ventures+ was founded in 1996 in New York City, on the philosophy that great ideas need great vision, originality, leadership, and execution to succeed. Over more than 26 years , MV+ has established an exceptional track record of successfully building and revitalizing niche businesses and assets through capital investment, thought leadership, active collaboration, and “elbow grease.” MV+ was a pioneer in the private/venture equity industry in its adoption of a fundless investment model, utilizing bespoke direct investments through SPVs as opposed to funds. Madison Ventures + has repeatedly identified off-market, high risk-adjusted return investment opportunities in a wide range of overlooked sectors in real estate, specialty finance, healthcare innovation and wellness, and other industries. Since its inception, MV+ has averaged
an annualized return on investment of more than 35%, with a sub-5% loss ratio, on approximately $1.9 billion of invested equity capital. Madison Ventures + is your trusted and innovative boutique private investment partner with a personal touch.
Madison Ventures + has offices in West Palm Beach and Denver.
For more information, visit Madison Ventures+ online, email the team, or continue the conversation on LinkedIn.
Contact: Jim Dissett
The 9th Block
303-532-7392
jim@the9thblock.com
