Latest news with #manufacturedhomes
Yahoo
10 hours ago
- Business
- Yahoo
Michigan among highest rates of private equity-owned mobile home parks in nation, research finds
Swartz Creek Estates in Swartz Creek, Michigan, is one of many manufactured home communities that were snapped up by Wall Street investment companies who moved into the residential real-estate market after the 2008 financial crisis. (Emily Elconin) Michigan has the second-most manufactured home parks owned by private equity in the nation, according to research from the Private Equity Stakeholder Project and Manufactured Housing Action. The state has 192 parks, accounting for 50,626 home sites, owned by private equity firms and hedge funds. Only Florida has a higher share, with 269 parks made up of 64,354 home sites. Texas trails Michigan, with 148 parks with 31,265 home sites. The research shows a disproportionate share of private equity-owned manufactured housing, with firms owning more than one in every four manufactured homes in the state. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX This marks a slight increase from 2020 and 2021, when private equity firms accounted for 23% of manufactured home purchases. But it's a significant increase from 2017 through 2019, when they accounted for only 13%. Three of the ten private equity firms that own the most lots have significant holdings in Michigan. The largest private equity firm the researchers tracked – Stockbridge Capital Partners – owns 266 parks made up of 74,761 lots, more than a quarter of which are in Michigan. The seventh biggest – Havenpark Capital Partners, accounting for 63 communities with 18,512 lots – has 29% of their lots in Michigan, while the tenth largest – Alden Global Capital – has 17% of their 11,204 lots across 141 parks located in Michigan. The firm with the highest portion of its portfolio based in Michigan is Silver Creek Capital Management, with 82% of its 10,637 lots across 44 parks being located in Michigan. They are the eleventh largest firm tracked in the report. The Private Equity Stakeholder Project suggests in their report that the business model is to buy a park, increase the lot rent to increase the park's value, then sell it at a profit within a few years. They point to Swartz Creek Estates as an example. After being acquired by Havenpark in 2018, the park's lot rent was hiked and new fees were introduced, increasing the cost to residents by 40%. Due to many manufactured home owners having limited mobility, the Private Equity Stakeholder Project says many residents are effectively trapped in increasingly untenable situations. The group proposed a number of new laws to increase protections for mobile home residents. They include, among other provisions, good cause eviction requirements laying out allowable reasons for evicting a resident, requiring residents to be offered a renewal lease when the existing lease expires, and requiring homeowners to receive fair market value for their home if they are priced out or evicted and the park owner takes the title to the home. Just this year, residents of Kristana Estates in Dewitt Township were notified by owner TIR Equities that they had just four days to move out, with the park's water subsequently being shut off the day after the deadline even while some residents were still living there. 'Private equity firms are out there to line their pockets and destroy affordable housing,' said Jason Elridge, a resident of Kristana Estates. 'People need to have a community that can prosper and a place where they can feel secure. I don't think private equity can provide that.' Solve the daily Crossword
Yahoo
7 days ago
- Business
- Yahoo
Summerside gives preliminary approval to 17-lot mini home subdivision
A new 17-lot subdivision for manufactured homes is moving forward in Summerside. During a special meeting Wednesday, city council gave preliminary approval to Traveller's Rest Mini Homes Ltd. for the development. The subdivision will be located between Cardinal Street and the east-west housing corridor that's currently under construction. Once it's completed, that corridor will connect Water Street East with Ryan Street in the city's north end. Summerside Mayor Dan Kutcher said the project will help diversify housing options in the city as the population continues to grow and the need increases for more housing — in particular, affordable units. "Not everyone can afford a single-family home, and we don't want just people living in single-family homes or in apartment buildings. You need to have a nice mix of housing across the community, whether that's duplexes, triplexes, fours, manufactured homes, mini homes," Kutcher told CBC News. "This is part of that. So this is good. It fits within the changes that we made to our official plan. It fits our goals as a city to create more forms of housing for more people." As part of the application, the developer is asking the city to cover the $15,500 cost of extending Cardinal Street from its current stub to the eastern boundary of the proposed subdivision. The city will pay that amount upon final subdivision approval. "Cardinal is a stub street. So generally, where there is a stub street, that means [that] at some point in time within the wider roadmap for the city, that stub will connect to another road," Kutcher said. "The issue is there's a short point of time where the one street starts and another begins. So the way it often happens here at the city, we help pay for some of that road work. All of the rest of the road work, the water and sewer and stuff, is already done. So it was a minor cost to bring the streets together." Preliminary approval is subject to several conditions. The developer must meet all municipal servicing requirements, enter into a subdivision construction agreement with the city, and satisfy the city's parkland dedication requirements.
Yahoo
14-07-2025
- Business
- Yahoo
Cavco Industries Announces Planned Acquisition of Manufactured Home Builder and Retailer, American Homestar Corporation
PHOENIX, July 14, 2025 (GLOBE NEWSWIRE) -- Cavco Industries, Inc. (Nasdaq: CVCO) ("Cavco" or the "Company") announced today that it has entered into a definitive agreement to acquire American Homestar Corporation and its subsidiaries (collectively, "American Homestar"), a Houston-based company best known in the market as Oak Creek Homes. American Homestar operates two manufacturing facilities, nineteen retail locations, writes and sells a limited number of manufactured home loans and acts as an agent for third party insurers. With 800 employees, revenues for the twelve months ended May 31, 2025 were $194 million, net income was $16.6 million and earnings before interest, taxes, depreciation, amortization, and other income ("Adjusted EBITDA") (non-GAAP)* was $17.8 million. During that time, American Homestar produced 1,676 homes. Cavco will acquire American Homestar for $190 million in cash, subject to customary purchase price adjustments. The acquisition is intended to be funded entirely from the Company's cash on hand and is expected to close in the Company's third quarter of fiscal year 2026, subject to applicable regulatory approvals and the satisfaction of certain customary closing conditions. Cavco's President and CEO Bill Boor said, "Throughout the acquisition process, we developed a tremendous respect for what Buck Teeter, Dwayne Teeter, and the entire American Homestar team have built. For decades, they guided the company through industry downturns and challenges, consistently adapting and ultimately thriving. American Homestar is a leader in our industry because it embodies the Teeters' values and focus on providing quality homes for deserving families. We at Cavco are grateful for their trust and are excited to join forces in the South Central U.S." American Homestar's President and CEO Dwayne Teeter commented, "Founded by my father, Buck Teeter, in 1971, American Homestar focused on providing high-quality, affordable housing while also fostering a stable and rewarding work environment for its employees. As we enter this exciting new alliance with Cavco, we know this combination is a perfect cultural fit and that our people will be part of a dynamic, growing company, well positioned to compete in an ever-changing environment. We thank Bill Boor and the entire Cavco team for their interest in American Homestar and their commitment to making this transaction happen." Highlights of the proposed transaction: Financial Impact: Cavco expects this proposed acquisition to be accretive to earnings and cash flow from operations. Potential for operational and cost synergies: In addition to implementation of shared best practices, the acquisition provides the opportunity for meaningful cost, purchasing and product optimization synergies. Strengthens Cavco's Position in the South-Central U.S.: Expands Cavco's presence across Texas and surrounding states, one of the country's most important manufactured housing markets. Capital Allocation: Following this strategic deployment of existing cash, Cavco will still maintain a significant cash position available for continued strategic investment. TN Capital Advisors LLC acted as exclusive financial advisor and DLA Piper served as legal advisor to Cavco for the transaction. Jackson Walker, LLP was legal advisor to American Homestar. Conference Call and Webcast Details Cavco's management will hold a conference call and webcast to discuss the transaction on July 16, 2025, at 1:00 p.m. (Eastern Time). Interested parties can access a live webcast of the conference call on the Internet at or via telephone. To participate by phone, please register here to receive the dial in number and your PIN. An archive of the webcast and presentation will be available for 60 days at About Cavco Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and produces factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco's finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at About American Homestar American Homestar was founded in 1971 by Buck Teeter and is a vertically integrated factory-built housing company, with operations in manufacturing, retailing, finance and insurance. It operates two manufacturing facilities in Texas, with retail locations across Texas, Louisiana and Oklahoma. Additional information about American Homestar can be found at Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. These forward-looking statements reflect Cavco's current expectations and projections with respect to our expected future business and financial performance, including, among other things: (i) the anticipated benefits and synergies of the proposed acquisition of American Homestar, (ii) Cavco's cash position following the potential American Homestar acquisition and anticipated uses of such cash, (iii) Cavco's expected financial performance and operating results, such as revenue and gross margin percentage; (iv) our liquidity and financial resources; (v) Cavco's business and industry outlook; (vi) the expected effect of certain risks and uncertainties on our business; and (vii) the strength of Cavco's business model. These statements may be preceded by, followed by, or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "future," "goal," "intend," "likely," "outlook," "plan," "potential," "project," "seek," "target," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. A number of factors could cause actual results or outcomes to differ materially from those indicated by these forward-looking statements. These factors include, among other factors, Cavco's ability to manage: (i) customer demand and the availability of financing for our products; (ii) labor shortages and the pricing, availability, or transportation of raw materials; (iii) the impact of local or national emergencies; (iv) excessive health and safety incidents or warranty and construction claims; (v) increases in cancellations of home sales; (vi) information technology failures or cyber incidents; (vii) our ability to maintain the security of personally identifiable information of our customers, (viii) compliance with the numerous laws and regulations applicable to our business, including state, federal, and foreign laws relating manufactured housing, privacy, the internet, and accounting matters; (ix) successful defense against litigation, government inquiries, and investigations, (x) timely completion of the proposed acquisition of American Homestar; (xi) the ability to successfully integrate American Homestar's operations, systems, and personnel with those of Cavco; (xii) realization of anticipated synergies and benefits from the acquisition; (xiii) potential disruptions to Cavco's business or the business of American Homestar as a result of the acquisition or the integration process; and (xiv) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Cavco. The forward-looking statements herein represent the judgment of Cavco as of the date of this release and Cavco disclaims any intent or obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise. This press release should be read in conjunction with the information included in the Company's other press releases, reports, and other filings with the SEC. Readers are specifically referred to the Risk Factors described in Item 1A of the Company's Annual Report on Form 10-K for the year ended March 29, 2025 as may be updated from time to time in future filings on Form 10-Q and other reports filed by the Company pursuant to the Securities Exchange Act of 1934, which identify important risks that could cause actual results to differ from those contained in the forward-looking statements. Understanding the information contained in these filings is important in order to fully understand Cavco's reported financial results and our business outlook for future periods. CAVCO INDUSTRIES, INC. Exhibit AUnaudited Non-GAAP Financial Measures of American Homestar, Inc.– Adjusted EBITDA(Dollars in millions)(Unaudited) Use of non-GAAP measures To supplement financial measures presented in accordance with GAAP, we report Adjusted EBITDA, a non-GAAP financial measure. This non-GAAP financial measure is not a substitute for GAAP results and should be considered in conjunction with them. Management believes Adjusted EBITDA is useful because it provides an additional tool to compare business performance across companies and periods, and it is commonly used by financial analysts when evaluating operating performance. Twelve Months Ended May 31,2025 Net income $ 16.6 Provision for income taxes 5.0 Depreciation and amortization 1.3 Interest expense — Other income (5.1 ) Adjusted EBITDA $ 17.8 Mark FuslerCorporate Controller and Investor RelationsEmail: investor_relations@ 602-256-6263On the Internet: * See Exhibit A for the reconciliation of American Homestar's Net Income to Adjusted EBITDAError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
08-06-2025
- Business
- Daily Mail
Inside the trailer park house-flipping phenomenon that is earning Americans big bucks
Up to 21 million Americans live in manufactured homes, also known as mobile homes and trailers, and savvy buyers are cashing in on demand for these tiny homes to make big bucks. Byron Sellers, 39, of Tampa, said he has seen an increase in mobile home owners since he started flipping homes in 2018. 'It is cheaper,' he told 'Lots of people are being pushed out (of the main housing market).' Victoria, of New York City, who asked to go by her first name, agreed. She rents her Upstate New York and New Jersey mobile homes for $1,350 a month. That price, for a three bedroom, one bathroom home, is steeply cheaper than even studio rentals in the metropolitan area. 'Everybody wants a mobile home,' she told 'You can even move it.' Both Byron and Victoria got started in the industry after they realized how expensive flipping residential homes was and how much more cost effective trailers are. Byron started flipping homes near the Chicago area after he lost his job in 2016. He and his wife bought their first two mobile homes in March 2018 for a joint price of $4,300 in a trailer park. Within 45 days, their ready-to-live-in trailer sold for $9,500. After putting in $3,000 of renovations into the second one, it sold for $10,000, Byron told Some trailers, they've gotten even cheaper than that. 'I've gotten some for free,' Byron revealed. Since starting their business, they've made a low six figures from flipping homes alone, Byron said. Another $400,000 from mobile home parks and their equity in them. And another $40,000 teaching others how to do what they do. The reason Bryon and his wife, Sharnice, migrated into the mobile home market was because the former had wanted to get into real estate for a long time, but multi-family homes were largely outside his budget. He first heard of mobile home flipping while driving for a rideshare company and listening to a podcast to pass the time. He shared it with Sharnice and the rest is history. Victoria agreed that sometimes landlords are just want something to move fast, so they'll hand it off for free. So far, the New York mogul has gotten two mobile homes for free. Victoria has made around $80,000 doing the same, and put roughly $30,000 into the renovations of her seven homes - three of which she still owns and rents out. Victoria says she sees a lot of Latinos snapping up hers and they're mainly upper lower and middle class families. Meanwhile Byron and Sharnice have found that many of their buyers are usually within the $20,000 to $40,000 salary range, typically between the ages of 30 and 69 and are white or Hispanic. 'You have a bigger buyer pool of cash buyers,' Byron told But not every mobile home is a steal. Since moving to Tampa, Byron has seen some trailers for the prices of starter homes. And some parks even have pools, pickleball courts, and convenience stores. Those areas, however, are typically geared toward those in retirement and typically go more than $100,000. Even without those perks, living in a mobile home can be a cost-effective strategy for those pinching pennies but looking for an affordable home solution. Trailers typically run for $50,000 to $100,000 cheaper than a traditional home, Byron said, and there are no Homeowner Association fees to pay. After purchasing the home, if buyers live in a park, they will have to pay to lease the land. On top of that, mobile homes are classified as property, like cars are, so insurance prices and property taxes are much lower than standard homes. However, unlike homes, they don't retain their value. But for those willing to invest time and money into renovating them, they can make plenty of money doing it. They 'don't depreciate' as much as people might warn you, Victoria told Byron recently acquired a trailer for around $85,000, after fixing the septic tank and putting in $40,000 of work into it, he and his wife sold it for $212,000. Another one, which was move-in-ready, he spent $200 for a cleaning crew and turned the property around and sold it for $7,000. He got the trailer for free as someone was being evicted, he said. On average he puts anywhere between $3,000 to $20,000 into the renovation and hopes to sell it for three times the price he put into it. Since moving to Tampa, as it is a harder market, the couple hopes to net at least 50 percent more than what they paid. 'After the hurricanes, it's harder,' Byron told 'The market has slowed down.' However, people are 'still buying' and he doesn't foresee the market ever becoming obsolete. 'It's a niche market,' he admitted. 'I just see the future of them. People are going to need affordable housing.' The most Victoria has ever spent on a renovation was $6,000, spending less than that on average. When she redoes a home, she focuses on the bathroom and kitchen, as she says those are the most eye-catching to potential buyers.
CBC
20-05-2025
- Business
- CBC
Glen Elm Trailer Park resident suggests Taylor Field site be rezoned for mobile homes
A resident of Regina's Glen Elm trailer court wants the City of Regina to rezone the former Taylor Field to allow manufactured homes on the site. "It's really an ideal site. The services are there, it's ready to go, the city owns it, there's no ownership issues," Randall Edge, president of the Glen Elm Retirement Community Residents Association, told The Morning Edition. "When you look at Taylor Field, it's got fantastic access. It's very close in proximity to Lewvan Drive which is perfect for moving in manufactured homes." In January, Glen Elm Properties, which owns the Glen Elm trailer park, served 14 residents with eviction notices saying their water and sewer lines were no longer viable and that residents would have their services shut off May 1. A second group of residents, including Edge, were given until June 30 to leave the park. Glen Elm Properties did not respond to requests for an interview. Edge said some of the trailers weren't in any shape to be moved from the trailer court and even if they were, there's nowhere to take them. "We're only allowed by zoning to be where we are." Edge said the idea of rezoning Taylor Field for manufactured homes came after Regina city council voted last week to ask Ottawa and the province for money to redevelop the former Taylor Field site for residential housing. The first phase would use money from the Canada Housing Infrastructure Fund (CHIF) to build waste and stormwater infrastructure along with roads and green space. Using the site at Taylor Field for housing, particularly affordable housing, has been discussed since the original Mosaic Stadium was demolished in 2017. "Here we have this fantastic property, the old Taylor Field that's been sitting unused for 10 years designated for low-cost housing. Why don't we embrace manufactured homes?" Edge said. In March, city council unanimously passed a motion to allow manufactured and mobile homes to be moved onto vacant residential lots in Regina. Ward 6 city councillor Victoria Flores, who introduced the motion, said city administration is working on an expedited report and recommendations based on the motion to be ready in the fourth quarter of this year. "The framework initiated by this motion is intended to assess the suitability of various sites, potentially including Taylor Field, for manufactured homes," Flores said.
