AUBURN, Calif., Aug. 19, 2019 /PRNewswire/ -- Saratoga Group has announced the successful closing of their first Qualified Opportunity Fund (QOF). "We were over-subscribed with a number of investors requesting investment after the closing," said Saratoga Group CEO Sam Hales. "I believe we struck a chord with investors who have researched QOZ (Qualified Opportunity Zone) offerings and decided they aren't comfortable with the risk to reward profile that is generally available in the marketplace."
Saratoga Group is specifically investing in Mobile Home Communities (MHCs) located in Opportunity Zones. Currently, they have 14 communities under management with plans to purchase another 15-20 in 2019.
Sam Hales continued, "We are excited to announce our second QOZ fund, also specifically investing in MHCs located within Opportunity Zones. Our second QOF (Qualified Opportunity Fund) is a $15M equity raise and is about 70% subscribed. We anticipate closing this fund to outside investment in September. We have 6 communities under contract in areas like Austin TX, Greenville NC, Daytona Beach FL and Bloomington IN."
MHC investment specifically helps to fill the QOZ mandate to invest in lower-income census tracts and assist current residents instead of accelerating gentrification that ultimately leads to displacement of these families. The median income nationally for a mobile home family is only $34,000 compared to nearly $60,000 for families not living in a mobile home community. A significant percentage of families in MHCs have incomes that place them below the poverty line.
QOZ investment requires "substantial improvement" into the real estate property. "For these neglected communities, that often means new water, sewer, electrical lines, renovated clubhouses, freshly paved streets, upgraded lighting and new parks for the children," says Saratoga Group CFO Becky Smallwood. "It's heartwarming to see these communities turn around."
About Saratoga Group
Saratoga Group was established in 2011 with the launch of investment funds focused on the acquisition of single-family homes. Other projects include land subdivisions, in-fill urban residential projects, office buildings and a boutique hotel. Since 2017, Saratoga Group has been almost exclusively focused on the acquisition and improvement of Mobile Home Communities.
For additional information regarding Saratoga Group or its upcoming QOZ fund, please contact them at invest.saratogagroup.net or 916 596-9000. These investments are only available to accredited investors per Reg D 506(c).
SOURCE Saratoga Group