Manufactured housing communities are the last large pool of unsubsidized affordable housing in the country, and the supply is shrinking every year. Mobile Home Park Fund III buys the land, improves the operations, and holds for the long run, paying quarterly along the way.
14 to 16% targeted internal rate of return over the underwritten hold.
7 to 10% stabilized Paid quarterly, every 90 days
7% preferred return, cumulative and non-compounding, paid before any profit share to the sponsor.
7 to 10 years underwritten Structured as a legacy hold, with no forced sale at the end of the window
100% or more bonus depreciation in year one. A one-time reduction in taxable income, not an investment return.
$50,000 minimum investment Reg D 506(c) · accredited investors, third-party verification required
Demand for affordable housing is at the highest level in recorded history, and the supply of manufactured housing communities shrinks every year. Parks get redeveloped into higher-value uses, and almost no municipality will zone a new one. You cannot make more of these.
Manufactured housing is the largest pool of unsubsidized affordable housing in the country, and the need for it has never been higher.
Existing parks are steadily lost to redevelopment. Zoning makes replacing them close to impossible, so the count falls year after year.
A resident owns the home and rents the lot. Moving a home costs thousands of dollars, so turnover is low and occupancy is sticky.
Six things draw investors to manufactured housing, and this fund is structured around all of them rather than one.
Hard assets bought below replacement cost, in a sector where demand does not disappear when the economy turns.
Lot rent from residents who own their homes. Low turnover and low operating intensity make the income unusually steady.
Cost segregation and bonus depreciation are targeted to produce a year-one deduction of 100% or more of the investment.
The plan is to return investor capital through a refinance once operations are improved, rather than depending on a sale.
Value follows net operating income. Filling vacant lots and correcting below-market rents raises the asset value directly.
Lot rents in these communities have historically sat well below the cost of any other housing option in the same market.
A small, concentrated fund rather than a large blind pool. The sponsor intends to close with two or three parks.
The offering document permits a raise of up to $60 million. That is a ceiling, not a target.
The sponsor intends to close the fund with two or three parks in it, which puts the realistic equity raise at $19 million to $28 million.
That matters for two reasons. A smaller fund means each park represents a larger share of your position, so the diligence on each one carries more weight. It also means the fund is not open indefinitely.
The operating plan is deliberately unglamorous. Buy well, fix the operations, collect the income, and then keep the asset rather than selling it into whatever the market happens to be doing.
Buy established communities with high occupancy and rents sitting below what the market will carry, at a basis below replacement cost.
Professionalize the operation, fill vacant lots, correct below-market lot rents, and bring infrastructure up to standard.
Distribute the resulting cash flow quarterly, and target a refinance that returns investor capital while the asset is retained.
Hold the community for the long term. The underwriting runs 7 to 10 years, but the structure is not built around a forced sale.
Two communities, one already closed and one under contract, with a possible third.
Arizona148 spaces, already acquired, currently 98% occupied. An established community bought with occupancy already in place rather than as a turnaround.
Under contract203 spaces, currently 99% occupied, and it comes with 44 fully entitled acres alongside it. Those entitled acres are expansion capacity that does not have to fight a rezoning to be used.
A third community is under consideration. It is not under contract and is not identified in this offering, so any capital allocated to it carries blind-pool risk. See the risks section below.
Distributions are paid quarterly, every 90 days. The figures below model stabilized cash on cash across the range the fund underwrites to, at the two ends of the hold window.
Below the $50,000 minimum. Figures shown for reference.
Stabilized at 7% cash on cash, per $50,000 invested, over 7 years.
Illustrative projections drawn from the sponsor's underwriting. Not guarantees, and actual results will differ. The bars show the stabilized year, held flat across the hold, because a year-by-year ramp has not been published. Distributions in the early years of a park's ownership are typically lower than stabilized while occupancy and lot rents are being worked on. These figures cover distributions only. They do not include any proceeds from a refinance or a sale, and they do not include the value of the year-one tax deduction. Capital is subject to loss.
One set of terms for every investor in the fund. There are no separate share classes.
Expedition Equity is bringing this fund to its investors alongside 52TEN, a manufactured housing operator that has been buying and running these communities for years. 52TEN is the issuer and the operator. Expedition Equity is the fund manager bringing it to you.
52TEN has paid every quarterly distribution it has committed to, across every fund it has raised, without exception.
More than two hundred investors are already in 52TEN vehicles, across two prior funds and several individual assets.
Nate Pattee is Chief Executive Officer and Jack Martin is Chief Investment Officer. The team runs the communities it buys.
Realized results on completed assets, and performance against underwriting on the two prior funds. Past performance does not predict future results.
| Asset or fund | Scale | Equity | Hold | Return | Outcome |
|---|---|---|---|---|---|
| Safford RV Resort | 92 lots | — | 1.4 years | 32% actual IRR | 1.46x realized |
| Santa Rita Heights | 50 lots | — | 2.5 years | 32% actual IRR | 1.88x realized |
| 52TEN Fund I | 5 properties · 492 lots | $10.25M | — | 12 to 14% IRR | 116% of pro forma NOI |
| 52TEN Fund II | 4 properties · 745 lots | $32.75M | — | 14 to 16% IRR | 127% of pro forma NOI |
Safford RV Resort and Santa Rita Heights are realized individual assets. Fund I and Fund II figures are performance against the net operating income each fund was underwritten to. Returns on prior funds and assets are not a projection of what this fund will do.
This is not a complete list. Capital is subject to loss, and the offering documents contain the full risk factors.
What it meansThere is no secondary market and no date on which you are entitled to your capital back. The underwriting runs 7 to 10 years, but that is a model, not a commitment. Commit only capital you can leave alone indefinitely.
What it meansMost real estate funds are designed to sell and return capital. This one is designed to keep the asset. The intended route back to your capital is a refinance, which depends on lending conditions at that time. If you need a defined exit, this structure is the wrong fit.
What it meansTwo communities are identified. A possible third is not under contract and not named, so part of your capital may be committed to an asset nobody has seen yet, on terms that have not been negotiated.
What it meansThe fund uses debt to buy these communities. Leverage raises returns when operations go to plan and deepens losses when they do not, and refinancing depends on interest rates and lender appetite at the time.
What it meansThe 100% or more year-one bonus depreciation is a target based on a cost segregation study, not a promise. What you can actually use depends on your own tax position, including whether you have passive income to offset. Your own advisor should confirm it before you rely on it.
What it meansReturns depend on filling vacant lots and moving below-market rents toward market. Residents in affordable housing are sensitive to rent increases, and there is a practical ceiling on how fast that can be done.
Founder · Expedition Equity
Dylan is responsible for investment strategy, underwriting oversight and capital allocation at Expedition Equity. His background covers building and operating multi-location businesses, evaluating real-asset and operating-company investments, and navigating private-market structures across several asset classes.
That experience informs a disciplined, risk-aware approach to which opportunities get brought to investors and which partnerships are worth making. An early career in healthcare shaped a process-driven, analytical approach to risk and decision-making.
For this offering, Expedition Equity has partnered with 52TEN, a manufactured housing operator running 1,927 lots across five states, which is the issuer and operator of 52TEN Fund III, LP.
A limited partnership interest in 52TEN Fund III, LP, which owns manufactured housing communities. You own a share of the land and the lot-rent income it produces. You are not buying the homes, which belong to the residents.
It is the largest pool of unsubsidized affordable housing in the United States, demand for it is at the highest level in recorded history, and supply shrinks every year as parks are redeveloped and zoning prevents new ones being built. Residents own their homes and rent the lot, and moving a home is expensive, so turnover is low.
Quarterly, every 90 days. Stabilized cash on cash is underwritten at 7 to 10%. Distributions in the early years of owning a community are typically lower than stabilized while occupancy and lot rents are being improved.
You receive the first 7% each year before the sponsor participates in any profit. It is cumulative, so if a year falls short the shortfall accrues and is owed to you later rather than disappearing. It is non-compounding, so the accrued amount does not itself earn a return.
The underwriting runs 7 to 10 years, but this is structured as a legacy hold and is not built around selling. The intended route back to your capital is a refinance once operations are improved, with the asset retained. There is no defined exit date and no secondary market, so treat this as long-term, illiquid capital.
$50,000. This is a Reg D 506(c) offering, which means it is open to accredited investors only and requires third-party verification of accredited status as part of the subscription process, before funds are wired.
A cost segregation study is used to accelerate depreciation, targeting a year-one deduction of 100% or more of the amount invested. It reduces taxable income once, it does not compound, and it is not an investment return. Whether you can use it depends on your own tax position, and your advisor should confirm that before you rely on it.
The offering document permits up to $60 million, but that is a ceiling rather than a target. The sponsor intends to close the fund with two or three communities, which puts the expected equity raise at $19 to $28 million. Two are identified today, and a possible third is under consideration.
Accredited investors only, with third-party verification completed as part of the subscription process. The minimum is $50,000.
Two communities with 351 spaces between them, quarterly distributions, a 7% preferred return, and a year-one deduction targeted at 100% or more of what you put in. A $50,000 minimum, open to verified accredited investors.
