Forrest Street Partners (FSP) purchased two more manufactured home communities (MHC) in the Louisville, KY, market during the 4th quarter of 2020. These parks represent their third and fourth MHP investments, to go along with four RV investments. Live Oaks MHC is located in Mt. Washington, KY, and contains 146 total sites and room to expand. Ponderosa MHC is located in Elizabethtown, KY, and contains 130 total sites. The parks were 71% and 77% occupied, respectively, at purchase allowing ample infill opportunity. Rents are currently below market rates.
FSP’s investment approach includes deep value add to revamp the living experience and aesthetics of their MH communities. Park improvements include adding amenities, re-paving the roads and parking pads, and assisting tenants in improving the exterior of their homes and grounds. FSP also expands the tenant base by adding new manufactured homes (approximately 30 new homes in Live Oaks and 25 new homes in Ponderosa) by tapping into the local housing demand.
FSP Partner, Jacob Harcrow says, “The Louisville market, specifically the Mt Washington and Elizabethtown, are great markets for affordable housing. Great schools, great retain and very low inventory. Our test adds show ample demand, and we expect to increase occupancy quickly in both of these communities.”
Immediately after purchase FSP began their renovations to both parks and expect to be complete prior to June 2021. Their first new homes are set for delivery in March/April, and FSP expects to have occupancies in the 92-95% range by the end of August.
