Core
These are fully stabilized communities with 7%-9% cap rates. Typically they are all cash purchase unleveraged. High quality communities have credit worthy tenants, typically 55 years of age or older with rent control. The communities are well located in primary and secondary markets. These communities, in particular, target investors who are looking for a safe, reliable return on their investment.
Core Plus
Core Plus is similar to our Core Strategy in generation of safe returns. Core Plus matches the physical description of Core, but includes the opportunity to increase NOI. A common Core Plus investment is a 2-4 star community in a primary market. The property has good tenants and, generally, has potential for increased rent roll. Our in-house dealer staff purchases and rolls in new manufactured homes and markets to new tenants with reasonable rent increases. Increases in NOI have a direct impact on the cap rate resulting in an agreeable upside on disposition of the community within 2-5 years.
Value Add
CEG’s Value Add Strategy seeks opportunities to increase the value of your investment. Our focus is on poorly-managed communities bringing in line unnecessary expenses and increasing NOI. Often these communities have a high vacancy rate or some physical obsolescense. CEG buys these properties at a discount, repairs physical deficiencies, and increases occupancy. We balance expenses, lower occupancy rates, and effect reasonable rent increases. Once the property is stabilized, it may be sold at a substantially higher price.
CEG is conservative in each phase of the acquisition, management, and disposition process. Our experience in due diligence with successful ventures will assure you of a smart investment with solid, profitable returns from our communities. All the while, we continue to streamline costs and add value each step of the way.
CEG offers safety through diversification with leadership you can count on. For more information to make an informed decision, please fill in our Inquiry Form. If you prefer, you may contact us at 209-845-3861.