About APEX MHP FUND FAMILY

The APEX MHP FUND Family was founded with a clear mission: to empower investors to achieve success in the mobile home park asset class, offering them the chance to enjoy above-average returns while benefiting from the stability and security of a diversified portfolio comprised of recession-resistant mobile home parks. At APEX MHP FUND, we believe in the potential of this often-overlooked sector and are dedicated to unlocking its value for our investors, providing them with a passive investment opportunity that aligns with their financial goals and risk tolerance.

Guiding the APEX MHP FUND family is a seasoned leadership team comprised of Dale Tweedy, Jeff Wakeman, and Jake Aaron. With roots in the commercial real estate development and investment landscape dating back to 1992, our team collectively has 75 years of experience in the industry. As a full-scale real estate development and investment company, we have navigated various market cycles, honing our expertise and refining our strategies to deliver consistent results for our investors. With a deep understanding of the nuances of the mobile home park sector and a commitment to excellence, our leadership team is poised to lead the APEX MHP FUND family towards continued success and prosperity.

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INVESTING IN REAL ESTATE, SPECIFICALLY MOBILE HOME PARKS, VS S&P 500

From 2000 to 2019, a $10,000 investment in real estate significantly outperformed the S&P 500. In 2020, mobile home parks emerged as a particularly healthy real estate asset class, demonstrating a notable 12% increase in commercial property value. This stands in stark contrast to other real estate sectors, such as hotels, retail, medical properties, and apartments, which experienced declines of 25%, 8%, 4%, and 3% respectively.

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Why Manufactured Homes

One of the prevailing challenges confronting the American economy presently pertains to the accessibility of housing. The current mortgage rates exceeding 7%, coupled with the escalating costs associated with homeownership such as insurance, taxes, and utilities, have accelerated the affordability crisis, emerging as one of the nation’s most formidable issues. According to data from the National Association of Realtors, the national median existing home price increased by 4.8% in March 2024 compared to the previous year, reaching $393,500. In North Carolina, the median price in February stood at $358,700, marking a 3.9% rise from the preceding year, while in the Charlotte metro region, the median price surged to $409,500, reflecting a 3.7% increase.

To purchase a median-priced home in the Charlotte Metropolitan Statistical Area (MSA) with a 7% mortgage translates to a monthly payment of $2,900 before factoring in utilities, insurance, and other expenses. With the median household income at $77,000, approximately 470,000 households in the MSA earn below this median income threshold. Even for households at the median income level, homeownership would entail allocating 45% of their income, while for moderate and low-income households, this proportion exceeds 50%. Consequently, traditional homeownership becomes financially prohibitive for nearly half of the households in the Charlotte MSA, a trend mirrored across the Southeastern U.S.

Simultaneously, the number of renters in the U.S. facing moderate or severe housing cost constraints reached a historic high of 22.5 million households in 2022, constituting roughly half of all rental households. Despite a marginal change in non-cost-burdened rental households over the past five years, the number of cost-burdened rentals has surged by 10%, as per Chandan Economics analysis of U.S. Census Bureau data. Moreover, the shortage of affordable rental housing nationwide has deepened, expanding by 480,000 units between 2019 and 2022. According to the National Low Income Housing Coalition’s March 2024 report, the U.S. currently requires an additional 7.3 million affordable housing units to meet prevailing demand.

Our objective is to facilitate access to affordable workforce housing across the Southeastern U.S. through our innovative approach. We offer a viable path to affordable homeownership by leasing land lots in our Manufactured Home Parks (MHPs) to homeowners who subsequently install their homes on these lots. Typically, lot rents amount to $500 per month, while a new three-bedroom manufactured home can be purchased and set up for $80,000. With a down payment of $8,000, the combined cost of lot rent and mortgage payment approximates $1,100 per month, equivalent to 26.5% of a household income averaging $50,000. To date, we have enabled homeownership for one-third of the households residing in our community who were previously confined to renting.

However, the proliferation of Manufactured Home Parks (MHPs) encounters significant regulatory hurdles in most municipalities and counties. Zoning regulations often restrict MHPs as a "grandfathered" use and prohibit new MHP developments, posing a substantial barrier to competition within our operational area. Furthermore, a majority (approximately 85%) of MHPs are individually owned properties, primarily by aging proprietors without a succession plan for their assets. Consequently, many of these properties are poorly maintained and underutilized, presenting an opportunity for acquisition at advantageous prices. Over the past seven years, we have leveraged these market dynamics to build a robust portfolio of strategically located properties, ensuring a resilient source of cash flow across all economic cycles.

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Our Difference

We own the entire stack of services needed to successfully acquire, build out, and manage a mobile home park.  Our investment fund is unique through its vertically integrated approach, encompassing various facets of the mobile home park (MHP) industry. We begin by sourcing mobile homes that may be needed for new parks through our own dealership, ensuring quality, affordability, and availability. With dedicated setup crews, we efficiently install homes in our new parks in a professional manner.

These same set up crews also work with all local MHP owners providing set up services.  They epitomize quality and dependability when installing any mobile home in any park.  Further, they develop strong relationships with park owners, ensuring smooth operations and mutual trust. These relationships are key in having the first opportunity to purchase off-market MHPs directly from owners. This access translates into high returns from the outset of our investment fund.

With the pads filled by our mobile homes, the work isn’t done.  Backed by experienced principals and their 70 years of collective commercial development and investment experience, we possess the expertise to strategically implement capital improvements in MHPs, maximizing returns while accurately assessing the financial implications. This unique combination of vertical integration experience and meticulous financial planning, positions us to offer aggressive returns in a conservative real estate asset class.

Once the heavy lifting is done, it’s time to manage each park effectively.  At the heart of our operations lies our property management team, dedicated to meticulous upkeep and the creation of a welcoming, family-friendly environment within our mobile home parks. Through tireless efforts, we prioritize the maintenance and enhancement of our properties, ensuring they remain attractive and inviting to residents and potential investors alike. By constantly grooming our parks, we position them to attract above-average offers to purchase, reflecting our unwavering commitment to excellence and value creation. With a focus on both aesthetic appeal and functional efficiency, our property management team plays a pivotal role in maximizing the potential of our investments and fostering long-term success.

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The Dream Team

Following a rigorous vetting process, we have curated an exceptional team comprising industry-leading professionals pivotal to the success of this fund. Each member of our support team boasts extensive expertise in investment funds and alternative investments, encompassing the specialized domain of mobile home parks. Dubbed, "The Dream Team," these individuals represent the epitome of excellence and proficiency, poised to navigate and capitalize on the nuances of our investment strategy.

COTT LAW GROUP:  Specializing in Investment Fund Legal Structuring
** Providing legal structure and council to APEX MHP FUND I

Cott Law Group represents hundreds of investment managers and private investment funds of all asset classes and sizes. Cott Law Group’s broad experience working with a diverse mix of clients sets it apart. Cott Law Group possesses the sophistication and deep industry expertise to help large managers scale while maintaining the versatility and manageable costs to accommodate emerging managers launching their first fund.

NAV:  #1 Investment Fund Administrators in the US
** Providing all aspects of investor administration for APEX MHP FUND I

A dynamic team of more than 2,750 professionals provide services to 2,300+ clients across the globe. NAV has achieved more than 30 years of year-over-year growth and maintains a remarkable 99% client retention rate, servicing more than $310 billion in Client assets. 

RICHEY/MAY: Considered a top Alternative Investment fund auditor in the US
** Bringing their expertise to APEX MHP FUND I for annual audits.

Richey May provides audit, tax, client accounting and advisory services to funds of all types and strategies both domestic and offshore. As a public accounting firm with hundreds of Alternative Investment clients in over 40 states, and relationships with many of the top service providers and specialists in the country, Richey May has a depth of specialized knowledge that few firms can claim. We focus exclusively on the needs of the business in the industries we serve, enabling us to understand our clients in unparalleled ways.

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