AUBURN, Calif., May 28, 2019 -- Saratoga Group has announced that their initial QOZ Fund has been fully subscribed. "We believe that our unique value proposition of purchasing underperforming Mobile Home Communities in Qualified Opportunity Zones is striking a chord with investors”, says Sam Hales, CEO of Saratoga Group. "Our initial fund invested in two communities, one in Bakersfield CA and the other in Marietta GA. Both communities were severely under managed with an accumulation of significant deferred CAPEX. However, unlike other QOZ funds, both the return of and the return on capital aren’t simply a large liquidation event somewhere in the distant future. These properties are generating cash flow during the turn around process. In fact, we dramatically increased rents at the Marietta community and haven’t received any notices that current residents plan to leave. I believe that residents want to stay because they see the renovations and cleanup that are already under way”
CAPEX investments at these new communities include sewer and water line repairs, repaving of roads and driveways, demolition and removal of old homes and bringing in new homes.
Saratoga Group is scheduled to launch their next QOZ fund in early June of 2019 and will begin taking investments immediately. According to Sam Hales, “Partnerships that liquidated in 2018 are bumping up against the 180-day re-investment rule by the end of June. Our second QOZ Fund will be available for investment prior to the end of the re-investment period.”
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. Saratoga Group now owns and manages 14 MHCs with its investors.
For additional information regarding Saratoga Group or its upcoming OZ fund, please email them or call 916.596.9000. These investments are only available to accredited investors per Reg D 506(c).
SOURCE Saratoga Group