Elevation Capital Group, an Orlando, Fla.-based real estate investment company, has increased the maximum offering amount of its investment fund, MHPI VII LLC (Fund 7), to $150 million. Launched in April 2017, the fund has reached $100 million in subscriptions from more than 500 members. It’s focused on investments in manufactured-housing communities and self-storage facilities. To date, it controls 19 assets in seven states, according to a press release.
The fund is an affiliate of the Dahn Corp., which operates self-storage facilities under the Mini U Storage brand name. The fund’s principals are Brian Dahn, president of the Dahn Corp., and Jamie and Ryan Smith, according to its website.
"The growth of Fund 7 is a testament to the quality and discipline of our team,” Ryan Smith said in the release. “While we are making great progress towards the stated objectives, there is still work to be done. We are committed to building strong partnerships with our investors and assets alike as we continue to grow this fund to its goal of $150 million."
Many Fund 7 investors have made investments under previous Elevation funds and are attracted to the performance track record of the manufactured-housing and self-storage markets, according to a source. “They believe there’s a possibility the income can be more predictable than retail or office, [and] other types of real estate,” Brian Dahn said. “They like the tax benefits.”
The fund is primarily targeting larger properties valued at $10 million to $20 million. In self-storage, its managers look for undermanaged facilities with deferred maintenance issues to be improved upon. In the manufactured-homes sector, they prefer mobile-home parks with at least 150 lots, a source reported.
Fund 7 is Elevation’s seventh investment offering since 2013. Through its affiliates, the company has acquired properties worth more than $475 million and holds interests in more than 175 assets across more than 30 states, the release stated.
Based in Newport Beach, Calif., Dahn Corp. develops and manages self-storage real estate investments through its Dahn America360 LLC division. The company and its affiliates have acquired, developed or sponsored more than 6.5 million square feet of storage. It owns 44 facilities comprising more than 2.8 million net rentable square feet.
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Fund 7, Website