Investment Thesis
Enable the strategic expansion of existing Manufactured Housing Communities (MHCs) and RV Parks by providing appropriately structured preferred equity capital to experienced General Partners.
| 10-50 Incremental Lots Per Community | 12% Cumulative Annual Preferred Return | 25% Exit Participation in Expansion Value |
Core Value Creation
- Creates additional cost-effective housing units addressing the nation’s affordability crisis
- Generates accretive returns for all stakeholders through strategic capital positioning
- Eliminates acquisition-phase return drag from pre-funded expansion capital
- Provides downside protection through a senior position in the capital stack
Target Investment Parameters
| Investment Size | Minimum: $250,000 | Maximum: $2,000,000 per project |
| Investment Term | Coterminous with the senior loan (typically 2-6 years) |
| Geography | Nationwide – focus on supply-constrained, high-demand submarkets |
| Expansion Scope | Target 10-50 incremental expansion lots per community |
The “Win-Win-Win” Value Proposition
This structure maximizes returns for all parties by funding expansion only when needed and ready.
- For GPs: Eliminates return drag by removing the need to raise full expansion capital upfront
- It optimizes the initial capital raise (improving the GP promote) while preserving GP decision-making authority through a non-voting preferred structure
- For LPs: Increases Day 1 returns because common equity is tied strictly to immediate, stabilized NOI rather than diluted by speculative expansion capital
- LPs retain 75% of the expansion upside while transferring development and timing risks to the GP and AHC
Sponsor & Project Requirements
We partner exclusively with top-tier, vertically integrated owner-operators.
- Experience & Reputation: Minimum 5 years operating MHCs, a track record of 3+ successful expansions, an ability to maintain 90%+ stabilized occupancy, and excellent standing with GSE lenders
- Project Readiness: Expansion sites must be fully entitled or shovel-ready
- Financial Discipline: Sponsors must provide detailed budgets featuring fixed-price contracts from qualified GCs, minimum 15% contingency reserves, and possess the balance sheet capacity to guarantee completion
- Process & Execution: AHC utilizes a streamlined 9-week funding process:
- Weeks 1–3: Initial screening, preliminary underwriting, and LOI issuance
- Weeks 4–9: Formal due diligence, site visits, legal documentation, and closing
- Ongoing Terms: Investments are structured through a property-level SPV and are generally non-recourse to the sponsor (with standard carve-outs). Ongoing monthly and quarterly financial and construction reporting is required
Let’s Discuss Your Expansion Opportunity