AUBURN, Calif., Feb. 7, 2019 /PRNewswire/ -- Saratoga Group has announced that they will be launching a yield-oriented Opportunity Zone (OZ) Fund in February 2019. "Almost exclusively, OZ funds are oriented towards ground up or major redevelopment projects," says Sam Hales, CEO of Saratoga Group. "The advantages of an Opportunity Zone investment for shielding a capital gains windfall are tremendous. However, most development projects are accompanied with significant idiosyncratic risk relative to construction costs, timelines, and economic cycles. These risks are difficult to quantify, even for sophisticated real estate investors."
Saratoga Group is specifically investing in Mobile Home Communities (MHCs) located in Opportunity Zones. Currently, they have 12 communities under management with plans to purchase another 15-20 in 2019.
Sam Hales continued, "Asset prices are universally near record highs and real estate is no exception. Although there has been some CAP rate compression for mobile home communities, over 90% of MHCs are owned by non-institutional owners. This is one sector where true 'value-add' opportunities are still available." MHCs help fill the under-served affordable housing market. Unlike other forms of real estate, these communities typically experience consistent demand during recessionary cycles.
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 OZ fund, please contact them at [email protected] or 916 596-9000. These investments are only available to accredited investors per Reg D 506(c).
Email: [email protected]
SOURCE Saratoga Group