What Will Landlease Community Asset Class Look Like by Year 2020?

George Allen’s Official Info Blog, for the MHIndustry & LLCommunity Asset Class! Available only at the MHIndustry & LLCommunity website: community-investor.com
or contact the author/blogger via (317) 346-7156 &r Box # 47024, Indpls, IN. 46247

What Will the Landlease Community Asset Class Look Like by Year 2020 ?

‘A Retrospective View of the Past Decade & Present,
Envisioning Our Business Model in the Future!’

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Most landlease (nee manufactured home) community aficionados know and tout Manufactured Housing Institute’s (‘MHI’) National Communities Council (‘NCC’) division, founded in 1996, as primary national representative of, and advocate for, the estimated 50,000 properties comprising this unique real estate asset class. Not as many folk, however, are as familiar with Urban Land Institute’s (‘ULI’) Manufactured Housing Communities Council (‘MHCC’), founded during 2004, & widely viewed as the income – producing property type’s de facto Think Tank, comprised of many of the brightest and best landlease community (‘LLCommunity’) owners/operators in North America.

On November 3, 2009, 40+/- members and guests of the MHCC, half of whom were NCC members, convened at Westin Market Street Hotel in San Francisco, CA., for a daylong meeting. Key presentation & discussion topics highlighted morning agenda:

• Selling the Benefits of Landlease Communities in a Challenging Economic & Legislative Environment, facilitated by Joe Adams, PHC, and president of The Housing Marketplace in Ashville, NC.

• Stop the Attrition: Resident Retention from Landlease Community & Apartment Perspectives, jointly presented by Bill Cramer, CPM® & MHM, from Pittsburgh, PA., & Gene Powell, CPM® of Bend, OR.

• Are You Reaching Your Customer? Using Social Media & Search Engine Optimization to Maximize Your Company’s Marketing Effectiveness, led by Tim Ware, owner of HyperArts, from Oakland, CA.

The most stimulating group discussion of the day, however, occurred during the lunch hour when Randy Rowe, founder and chairman of Green Courte Partners, LLC, headquartered in Lake Forest, IL., challenged landlease community owners/operators to imagine and defend what they think our unique income – producing property type business model will look like in ten years, by year 2020!

As was soon determined; one way to approach this challenge, is to ‘look back’ as we ‘looked forward’- from today, identifying changes – or not, relative to specific foci; which in turn, might serve as precursors to what could materialize during the next ten years, to nearly 2020. Here’s the Baker’s Dozen focus areas we identified and discussed:

1999 2009 2019

1. 80%+ multisection homes increasingly more continuation of this
& 20%- singlesection singlesection homes affordable trend

2. prevalence of land/home prevalence of on – site on – site brokerage of
packages among retailers sale of new & resale homes new & resale homes

3. abundance of chattel $ scarcity of chattel $ chattel $ on – site via
lenders & cash flow

4. ‘developer series’ homes ‘community series’ homes rehab of all homes
by design for land/home by design for LLCommunity already on – site

5. vacant rental homesites prevalence of on – site LLCommunities as
filled by MHRetailers sales via BDMs* & staff as new MHRetailers

6. consolidation of retailers regional more than national continuation of
& LLCommunities LLCommunity consolidation consolidation

7. relatively few ‘park’ more publicity relative to continued pressure to
closures across U.S. ‘park’ closures & ROCs* close or convert ROC

8. traditional print ads widespread web marketing web marketing and
social networking

9. home manufacturers = LLCommunity owners = shared influence and
major influence & $ emerging influence & $ leadership of industry

10. good LLCommunity $ some LLCommunity return to widespread $
& occupancy health foreclosure & forbearance & occupancy health

11. no- to- few RV parks in the many RV parks now in the continued presence of
MH rental homesite mix MH rental homesite mix the RV/MH site mix

12. no-to-few rental homes increasing number of rental no-to-few rental
on – site in LLCommunities homes in LLCommunities homes in LLComm.

13. OK demographics with waiting for newlyweds to great demographics
‘newly weds/nearly deads’ return & ‘boomers’ retire! from young to old!

To be sure, there’re additional business foci we could have- maybe should have, given more time, been included on this interesting list, e.g.

• Major influence & presence of CMBS* in 1999 – but no longer a factor. Future?

• The evolution – or not, of new HUD Code home installation standards and enforcement procedures, especially as this matter relates to passage of the Manufactured Housing Improvement Act (‘MHIA’) of 2000 – yet to be fully implemented, (Yet another apropos ‘business focus!) intended to segue our industry from the ‘trailer business’ to the ‘housing business’

• We’ve gone from a half dozen print trade press publications to three in just one year; but are seeing emergence of online ezines and newsletters. Staying power?

• Decreasing support for regional home shows (e.g. demise of Midwest MHShow in Louisville, KY) to state – hosted symposiums/showcases of new homes

• Professional property management too continues to evolve, from the thin presence of 250 CPMs®* in 1999, to200 ACMs®* and nearly 1,000 MHMs* today. Next?

• And how ‘bout these two perennial bugaboos: good & bad industry image, and increasing government regulation at all levels?

Yes, all these beg that seminal question: ‘Where will these 21, and additional, foci be by year 2020?

This has been an inside look at what goes on in an industry Think Tank manned by individuals whose livelihoods, careers, fortunes, and business success or failure, depends on well – knowing: ‘Where we’ve been’, ‘What we’re about today’, and Where we surely hope to be tomorrow!’ If you’d like to become involved in these timely and strategic discussions, consider joining MHI’s NCC, as a direct dues – paying member, by phoning Thayer Long @ (703) 558-0678. And for membership information relative to ULI’s MHCC, contact Joanne Stevens, CCIM® & ACM® via (319) 378-6786. How’s this for a BONUS? During mid – April 2010, both groups will officially combine their Spring meetings at MHI’s annual Manufactured Housing Congress in Las Vegas! If you’re truly active in the LLCommunity asset class, you can hardly afford NOT to be present, doing your part to influence the present and future of the MHIndustry and our real estate asset class. For information on this historic event, again, contact Thayer Long at the aforementioned phone number or via www.manufacturedhousing.org

This too, is a working document for the HUD Code manufactured housing industry and landlease (nee manufactured home) community real estate asset class! If you’d like to input your thoughts, ideas, suggestions, critique, etc., prior to the above – announced joint meeting of the NCC & MHCC, contact Thayer Long, Kenny Lipschutz (chairman of the MHCC) of Brookside Communities in MI. @ (248) 645-1077, or the author of this feature.

End Notes:

• BDM Business Development Manager of HUD Code home manufacturer
• ROC Resident Owned Community, usually as cooperative or condo
• CMBS Commercial Mortgage Backed Securities
• CPM® Certified Property Manager member of the Institute of Real Estate Management (‘IREM’)
• ACM® Accredited Community Manager certification designation via auspices of the Manufactured Housing Educational Institute (‘MHEI’)
• MHM® Manufactured Housing Manager certification designation via auspices of PMN Publishing

George Allen, Realtor®, CPM®, MHM
Consultant to the Factory – built Housing Industry &
The Landlease Community Real Estate Asset Class

Box # 47024
Indianapolis, IN. 46247
(317) 346-7156

Visit his website: www.community-investor.com and Blog
Email: gfa7156@aol.com

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