Some of us thought nrf paid too much per lot, about 50,000, when it bought its mfg housing communities.
SUI at 6/30/13 has an undepreciated original cost per lot of about 27,700.
Today's print WSJ has an article about Carlyle buying two Florida communities, both over 55 restricted, for 30.8 million. The communities were identified but the number of lots was not disclosed, so I looked them up.
Per the websites, they contain 366 lots, so the average cost per lot is 84,153. The weighted average (my calc) of the average monthly rents reported in the WSJ is 610 (vs 439 at sui).
The article went on to say a 315-lot community in Arizona recently sold for nearly 121,000 per lot, the highest ever in Arizona, per the article.
Another theme in the article is manufactured housing communities is gaining respect as an investment for the stable cash flow. They ain't "trailer parks" any more. Page C8 of the print edition.
Why do I do this work??......It's simple......nrf is by far my largest position and SUI is second largest by a good margin over the third largest. I learn all I can about my very large positions.
$50,000 per lot with a manufactured home is not too much. $121,000 sounds like way too much. But, someone had it appraised or it wouldn't have fetched that kind of price. NRF is my largest position. I count on winning two ways up to $11.50.