Patriot Holdings Launches Fund for Manufactured Housing, Self-Storage, Industrial Assets
The fund will acquire off-market assets owned by non-institutional owners, located in stable or growing economies.
The soaring cost of existing single-family homes and consumers’ love affair with self-storage has led Patriot Holdings to launch Patriot Fund II, to be used to acquire manufactured housing, self-storage, and industrial facilities across the US.
According to data from the National Association of Realtors, the median price of an existing single-family home rose 23% from a year ago, representing the largest increase on record. This is causing surging demand for the affordable housing provided by manufactured housing communities.
Similarly, the US self-storage market is a booming $22 billion industry, with 1-in-10 households now paying for self-storage at an average amount of $87/month.
Patriot Will Aggregate Self-Storage Assets as All Purpose Storage
Patriot will raise up to $25 million from investors to acquire, redevelop or construct these types of facilities.
The strategy of the Patriot Fund II will be to acquire off-market assets owned by non-institutional owners, located in stable or growing economies.
There is a limited window of opportunity for these value-add assets to be bought and sold, “because institutional buyers and private equity companies are entering the sector and over-paying for “mom and pop” owned assets that have tremendous upside,” the company said in a release.
Patriot’s internal acquisitions team has been cultivating off-market deal flow for over a decade, it said.
Patriot will aggregate its self-storage assets under the brand, All Purpose Storage.
About Patriot’s First Fund
Patriot Fund II is Patriot’s second investment fund. Its first was a $15 million fund that received a surplus of interest and was closed to new investors on May 31, 2020.
Patriot Fund I deployed its capital within 15 months, producing a 15.7% cash-on-cash return in the first year for its investors, well above the mandated preferred return of 10%, the company said.
It cleared $1 million in profits from disposition events, allowing it to begin returning initial invested capital ahead of forecasts.