Performance Realty, Inc. (PRI), invests primarily in Mobile Home Parks as well as other opportunistic multi-family and mixed-use projects.
Mobile Home Park
PRI’s focus on Mobile Home Parks (MHPs) stems from what we feel are the inherent advantages of investing in the manufactured housing sector
… PRI POP
(Property Operating Plan) …
As a consequence, today the majority of MHP communities remain owned and operated by “mom and pops.” As seasoned and experienced owners and operators of residential real estate, Performance Realty is confident we will improve our parks, boost occupancy, and increase rents. These actions result in more satisfied tenants, lower turnover, higher long-term rent potential, and increased values. Lastly, we believe the increased institutional interest in this asset class and more diverse financing options will drive up valuations over the next five to 10 years. This trend is likely to continue as the industry further consolidates.
An important tenet of our vision is that PRI is focused on creating value and forging a positive social impact in our investments. More than just an owner / operator of real estate, PRI seeks to differentiate itself in the sector by creating a brand that is equally focused on bringing a progressive mindset through its actions to its communities and tenants, while also delivering meaningful returns to our partner investors.
We feel strongly that these two factors are not mutually exclusive; in fact, we are convinced that highly satisfied tenants living in well-run communities lead to longer leases, predictable NOI over time and improved overall metrics for the parks we seek to rehabilitate.
… Social Impact Strategies …
PRI is dedicated to the health and wellness of our residents and our environment. We employ a creative approach in design and operations to benefit the residents and the communities in which we operate.
We proactively invest in solutions to better the lives of our residents and communities through active support and instilling a sense of pride. This also leads to better, more stable returns for our funds and our investors.
Some of the ways we have achieved this in our parks:
- Community pride programs incorporating clean up and recycling programs, landscaping and home improvements
- Replacement of inefficient outdoor lighting with LED lighting
- Programs designed to promote resident relations/socialization
- Installation/replacement of water-saving plumbing fixtures
- Leak detection/repair to reduce water waste
- Participation in the MHCO-administered Rental Assistance Program benefiting low income tenants (Oregon properties)
… ORMHP 2051, LLC, ACQUIRED IN SEPTEMBER 2017 …
… Performance Communities Fund I …
Closed to new investment as of September, 2019
10 year anticipated hold
12-14% targeted IRR over life of the Fund
$7.5 million invested in assets to date. Current Portfolio Valuation $11 million (based on Refinancing Analyses). Asset performance is exceeding plan.
- 8% preferred distributions are being paid quarterly to Investors. Distributions are current and have been paid retroactive to fund inception.
- Distributions commenced in month nine, 12 months ahead of plan.
… Performance Communities
Fund II …
Accepting new Investments from Accredited Investors in March 2020
- 7 – 10 year anticipated hold, 12 – 14% targeted IRR over the life of the Fund (Cash Distributions from operations plus proceeds from Asset Refinancings and Sales)
- 8% Preferred Returns to Investors, 75% profit participation to 14%, 50% profit participation after 14%