52TEN Fund III

THE OPPORTUNITY
With Fund III, Investors will gain exposure to a variety of mobile home parks through an experienced sponsor who is adept at finding quality properties, repositioning them, and delivering a “best in class” investment experience.

THE FOCUS
Fund III will allocate to higher quality, value-add and core-plus mobile home parks in markets where home values are above average and where high demand for affordable housing is present.

52TEN BELIEVES

• Quality properties and quality locations will experience higher demand and faster rent growth
• Larger communities will attract superior debt resulting in a lower overall cost of capital
• Larger communities offer economies of scale that result in more efficient operations
• Quality will outperform cheap over the long-term

INVESTMENT OBJECTIVES
The investment objective of the Fund is to achieve income generation, capital appreciation, and tax benefits with respect to the capital contributions of Investors. 
Specifically, the Fund will aim to distribute 7% or more from cash flow during operations, with an overall annualized target return to Investors of 13-15%, with no ceiling. 
To achieve these objectives, the Fund will acquire properties which are underperforming in a manner, that when remedied will provide increased performance and property appreciation. 

ACQUISITION STRATEGY
52TEN deploys an acquisition strategy that focuses on properties that are not for sale. This strategy involves investing the time to build relationships with owners and brokers, allowing 52TEN access to properties that never hit the open market. 

LEGACY HOLD STRATEGY
FUND III intends to hold the portfolio indefinitely as a legacy hold strategy. This means to acquire, take maximum bonus depreciation, reposition each park within the first 3-5 years, pursue a refinance or supplemental loan, use proceeds to return LP capital, avoid tax events, and keep the coupon. Thereafter, continue to refinance at intervals as market conditi