Midwest Park Capital Fund 1 LLC Investor Portal

Midwest Park Capital

A Precise Approach To Mobile Home Park Investing

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Midwest Park Capital LLC
506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

Midwest Park Capital Fund 1 LLC (“Midwest Park Capital Fund”, the “Company” or the “Fund”), began operations on April 23, 2020 with the purpose of purchasing mobile home communities and mobile home parks and engaging in the rehabilitation and resale of such assets throughout the United States. The Fund’s legal structure was formed as a limited liability company (LLC) under the laws of the State of Delaware on April 23, 2020. The Fund is managed by Midwest Park Capital LLC and the individual executive managers associated with the Fund are Jonathan Tuttle and Cristian E. Dukes.

The Company’s fundamental investment strategy is to assemble a diversified portfolio of high projected cash-flow mobile home park assets with the goal of delivering capital preservation, consistent quarterly cash-on-cash income paired with equity growth. The Fund expects to achieve this objective by acquiring, then adding-value or repositioning under-valued, mismanaged, sub-performing, or improperly capitalized income producing assets.

Owners of mobile-home parks have trounced the broader market thanks to soaring house prices & nimbyism. One of the best-performing investments since last decade's housing crash, mobile home parks.

- Wall Street Journal

Midwest Park Capital LLC
506(c) Offering Platform

summary of operations

Investment Strategy

The Fund intends to provide both current income and longer-term projected gain for Fund investors through acquiring and operating a portfolio of income-producing mobile home communities and mobile home parks In the United States, approximately 22 million Americans, (about 8% of the population) live in mobile home parks. The market for mobile home parks is highly fragmented with a majority owned by mom and pop owners. The Fund believes there is a strong, growing demand for rental sites in mobile home communities as nearly 60 million Americans need affordable housing. Affordable housing in the United States is in constant demand, regardless of the country being in a high-growth period, when homebuilding lags behind job growth, or during economic downturns. Additionally, job losses or foreclosures increase the demand for rentals and lower-cost affordable housing.

Mr. Tuttle’s experience with income-producing properties, as well as relationships within the industry and third party operators of income producing properties, should enable the Manager to identify favorable acquisition opportunities for the Fund. After a property is acquired, the Manager will evaluate and make capital improvements to infrastructure, as well as common facilities, in order to maximize the projected return from the property.

Structure of Fund’s Investments

It is projected that the Fund will structure most of its investments as joint ventures with third party operators. The Fund and the third party operator(s) will form a separate LLC for each property to acquire and operate various properties.

Selection of Income Properties for Investment

The Fund’s Management team intends to rigorously research and evaluate potential investment opportunities. The Manager’s experience with income-producing properties and relationships with third-party operators should enable the Fund to identify favorable investment opportunities. The Fund anticipates acquiring multiple income-producing properties during the first 3 years after the closing of the initial tranche of this Offering. The general guidelines are as follows:

  • Secondary and tertiary markets will be the primary focus for investment opportunities
  • Strong sub markets in the secondary and tertiary market will carry the highest weight for investment opportunity
  • Areas where annual population growth rate exceeds 4%
  • Areas with demographics dominated by blue collar, services, government, construction, military, and Hispanic persons
  • Properties located within the growth path for nearby entities
  • Local single gamily homes (stick built) that cost at least $100,000
  • Rental rates below market rates
  • Average property Size: 75-250 units
  • Estimated average age of target properties: The majority of the assets will have been established between 1970 and 1990

For each prospective investment in a property, the decision to make an investment will be the sole decision of the Manager entity.

Compelling supply and demand as almost 60 million American's need affordable housing and only about 12 million mobile homes are available. More importantly, about 8% of America lives in mobile home parks today.

Midwest Park Capital LLC
506(c) Offering Platform

Company Management Team

The Company is currently managed by seasoned business and sector professionals dedicated to the success of the Company and efficient execution of its planned operations.

Jonathan Tuttle

Jonathan Tuttle

Head of Acquisitions

Jonathan Tuttle has an extensive real estate and manufactured housing background, knowledge, and experience that started very early growing up in a real estate family. His father was a general contractor for over 80 custom-built homes, the owner of 2 real estate offices, and the owner/manager of 3 manufactured housing parks for the last 15 years. 2 of the parks are still currently owned.

Mr. Tuttle was previously the Vice President at Miller Chicago Real Estate, a leading commercial real estate brokerage firm in Chicago.

Before Miller Chicago, he served as the President of the Midwest for Yale Realty and Capital Advisors. Yale is the preeminent manufactured housing brokerage firm in the United States where the team of 5, completed over 2 Billion in closed mobile home park brokerage transactions and park evaluations in this sector.

Jonathan’s reputation in the industry led to him being invited to be a guest speaker at the 2020 Manufactured Housing Institute “MHI” National Congress and Expo at the industry’s biggest national event in Las Vegas.

Jonathan attended the program on negotiation for senior executives at Harvard Law School.

Cristian E. Dukes

Cristian E. Dukes

Head of Investor Relations

Cristian began his career working within mortgage banking at Cambridge Realty Capital. There, he specialized in senior living and healthcare facilities, to offer creative real estate financing opportunities and assist with portfolio divestitures. This is where his many years of market research and client investor relations experience began.

After leaving mortgage banking, Cristian joined a private equity consultancy, Stax, Inc. In this position at Stax, Cristian assisted his team with market evaluation and due diligence for several private equity acquisitions totalling approximately $50 million in value. Working with C-suite clients daily helped Cristian to provide data-driven, actionable insights designed to drive growth, enhance profits, increase value, and help his clients make better investment decisions.

Cristian received his B.S. in Finance from the University of the Incarnate Word in San Antonio, Texas.

There are only about 10 new park developments in the last 20 years due to government zoning regulations and not allowing new developments. This gives current mobile home park investors a moat and competitive advantage compared to all other real estate asset classes.

Midwest Park Capital LLC
506(c) Offering Platform

terms of the offering

$10,000,000

Minimum Offering: $2,500,000

Minimum Investment: $50,000 (50 Units)

The Company is offering a minimum of 2,500 and a maximum of 10,000 Class A Membership Units at a price of $1,000 per Unit. Upon completion of the Offering between 2,500 and 10,000 Class A Membership Units will be issued.

Distributions of Net Cash Flow, with the exception of the Preferred Return distribution, shall be distributed annually, within forty-five (45) days after the end of each fiscal year. All distributions of Net Operating Cash Flow shall be distributed as follows:

  • (i) first, a Preferred Return Distribution, distributed to the Class A Members, to equal an annual non-compounding, cumulative Preferred Return of eight percent (8%), paid quarterly and calculated based on the unreturned Capital Contributions for such Class A Member and;
  • (ii) second, of any remaining net cash a distribution to provide for the payment of any accrued but unpaid Preferred Return due Class A Members and;
  • (iii) third, of any remaining net cash shall be distributed seventy percent (70%) of remaining distributable net cash flow to the Class A Members, as a group, pro rata and thirty percent (30%) of remaining distributable net cash flow shall be distributed to the Class B Member(s), as a group, pro rata.

Distributions of net proceeds from the winding up of the Fund’s investment operations and subsequent disposition of Fund assets shall be distributed on the following summarized schedule and subject to the terms of the Operating Agreement:

  • (i) first, one hundred percent of distributable net proceeds shall be distributed to the Class A Members, as a group, pro rata until each Class A Member has been provided a return of invested Capital Contributions to the Fund and any current or accrued Preferred Return due and;
  • (ii) second, seventy percent (70%) of any remaining distributable net proceeds shall be distributed to the Class A Members, as a group, pro rata and thirty percent (30%) of remaining distributable net proceeds shall be distributed to the Class B Member(s), as a group, pro rata and;
  • (iii) third, should the Class A Members receive a return of invested Capital Contributions and aggregate Distributions such that each Class A Member realizes an annualized Internal Rate of Return (“IRR”) equal to fifteen percent (15%) (the “Target Return”), then any such additional distributions of net proceeds beyond the Target Return amount shall be distributed fifty percent (50%) to the Class A Members, as a group, pro rata and fifty percent (50%) to the Class B Member(s), as a group, pro rata.

CONTACT US

Please complete the contact form and we will get back to you about any questions you have about our offering.

Midwest Park Capital Fund 1 LLC - 444 West Lake Street Suite 1700 - Chicago, IL 60606 — info@midwestparkcapitalfund.com — (833) 647-3863

Midwest Park Capital LLC
506(c) Offering Platform

so much more than what you see

prospect dashboard

The Midwest Park Capital LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
  • Access to our SEC filing;
  • View real time offering metrics of how far along we are in the offering process;
  • View a timeline of your progress in the subscription process;
  • View company contact information; directly contact the administrator;
  • Easily upgrade your account with the click of a button.

Once your account is upgraded you will have additional access including:

  • Complete the subscription documents;
  • Upload subscription and accreditation documents as applicable;
  • Specific information for investing and instructions on transfer of investment funds;
  • Company documents including Reports, Financials, and Supporting Documents;
  • Asset Portfolio as applicable;
  • News articles written by the company;
  • Documents associated with your account.

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