Crystal View Capital Launches Manufactured Housing, Self Storage Fund

Crystal View Capital has launched a third real estate fund. Crystal View Capital Fund III will invest in manufactured housing communities and self-storage facilities with a value-add business plan. The fund will seek to raise $95 million of investment capital with a minimum investment of $50,000.

The fund launched only two weeks ago and already has $10 million in capital commitments. Crystal View already has $10 million in assets under contract, which are scheduled to close in the first quarter of the year.

Crystal View Capital targets self-storage facilities and manufactured housing communities, and has seen an increase in demand for these properties from its limited partners from previous funds. “Due to the performance of self-storage and manufactured housing during the COVID-19 pandemic, interest in both asset classes has been prodigious from institutional investors and all investors looking for yield,” says Matthew Ricciardella, principal and managing partner at Crystal View Capital.

Both asset classes have seen a surge of investment activity during the pandemic. This week, Blackstone Real Estate Income Trust acquired Simply Self-Storage from a Brookfield Asset Management real estate fund for approximately $1.2 billion. The portfolio includes 8 million square feet across the US, making BREIT the third largest non-listed owner of storage in the country.

Last month, Buchanan Street Partners launched a self-storage investment platform with plans to buy $350 million to $500 million over the next five years. The firm has tracked the market and seen heightened consumer interest in storage facilities, which have led to strong occupancies.

There has also been increased activity for manufactured housing deals. In November, JLL Capital Markets closed seven manufactured housing deals totaling 1,038 home sites in Southern California. The deals totaled $118 million. The firm also sold a $46.4 million 17-property manufactured housing portfolio in Phoenix totaling 1,050 home sites.

At the time, Zach Koucos with the firm said, “The rising cost of single-family housing in major markets around the US has solidified manufactured home communities as an attractive lower cost alternative for families and retirees.” He expects to see continued interest in manufactured homes and activity through 2021.