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Chateau Communities Takes Stake in Asset Development Group

DENVER-It's strictly a strategic investment, says Chateau Communities, which is pumping $11 million into a Milwaukee-based Asset Development Group. Chateau is eyeing a plum 20% internal rate of return in exchange for its backing.

By John Rebchook | Updated on February 12, 2001

DENVER-Chateau Communities, one of the nation’s largest owners and operators of manufactured home communities, has made a strategic investment in Asset Development Group Inc. of Milwaukee.

“It is really a debt investment in the form of a participating mortgage,” Chateau executive vice president Rees Davis told GlobeSt.com. “We have about $11 million invested. And we have the potential of investing another $6 million or $7 million. At the end of the day, we would expect it to get us an equity-type of return in the neighborhood of a 20% internal rate of return.”

Chateau, which is based in Greenwood Village, a suburb southeast of Denver, adds 6,000 residents to its Communityplus Buying Program. Its goal is to have a total of 200,000 residents in the program, which provides discounts from various vendors.

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