ERC Communities is a pioneer build-to-rent (B2R) real estate development company wholesaling mini-neighborhoods of affordable single-family, manufactured homes. Led by senior executive experience of over 100 combined years and $1 billion in construction experience, the company is at the forefront of the emerging B2R boom. Help us answer the call for affordable single family homes offering approximately 25% to 35% reduction in rental costs in a safe, sustainable environment.
3.8 M DEFICIT OF HOMES*
A surge is underway in development of subdivisions of single-family homes and townhomes “built for rent” (abbreviated as “BFR”), and they are being leased faster than developers can build them.
The problem is that the homes being built for rent are typically at a price point that is higher than many households can afford comfortably.
The strategy of developing manufactured homes for rent can help greatly in meeting this societal need, and in a manner that pays strong dividends to the developer.
Today’s manufactured homes are of a considerably higher quality, and more appealing than those of decades past. If the rent is significantly lower than for competitive site-built homes, this study concludes that there will be exceptionally strong demand for these rental homes.
OUR UPCOMING LOCATIONS
Tampa Metro: Tampa, Brandon, Riverview, Seffner, Plant City, Zephyrhills, Wesley Chapel, Pasco County, Ellenton and Bradenton
Central Highway 4: Lakeland and Orlando metro area
Sarasota Metro: East Sarasota, Port Charlotte, North Port, Punta Gorda, Venice and Englewood
South Gulf Coast: Ft. Myers, Cape Coral
Jacksonville Metro
Broke Ground Q4 2022 in Zephyrhills:
39575 North Ave, Zephyrhills, FL 33542
Fully developed cost of an ERC MHR community is approximately 60% to 70% of the cost of a conventionally built single family home community
Direct material and labor costs lower as they are factory-built
Land allotment is approximately 1/3 less than what is needed in conventionally built homes
Horizontal” nature of land development and construction (underground, paving, and landscaping only), makes sites available sooner
Homes can be moved into the community faster, and in groups
Homes are made available for rent sooner
ERC anticipates that most homes will have lease contracts in-place prior to being transported to the community
Once homes are set up, rent collection can immediately commence
ERC projects 100% occupancy of its developments that are 100 units or smaller within 12 months
ERC’s MHR communities will be developed outside of core urban areas where higher and better uses of land are more likely, resulting in lower land costs and faster entitlement processes
According to surveys, monthly rent savings of $1,000 is worth as much as 15 to 20 minutes of additional commute to renters
ERC will seek entitlement of land that is “a bit further out” and not in competition for higher zoning uses
The ERC development team will ensure that proper zoning and entitlements can be achieved before acquiring land for new development
The KEY to the ERC MHR platform strategy is to address the strongest and broadest market demand
Focus on extensive need for separate family living in 3-bedroom / 2-bathroom homes approximating 1,400 square feet
Homes that are affordable for entry-level families
Of particular concern in the in-migration states of the Southeast, where single-family home prices and rental levels are increasing materially
Approximate $1,000 / month savings afforded in ERC’s MHR communities allow for a broader, deeper market of potential renters
SCALING STRATEGY
Cost: Average cost per home estimated at ~$65,000; all-in development cost of ~$160,000 providing solid basis for profitable rentals and scaling
Home Build: Prioritization on structural integrity over optional amenities
Standard Features include hard-surfaced floors (no carpets), wider exterior walls (2” X 6” vs 2” X 4”), senior grade insulation, full FEMA-code storm protection
Demand driving up the cost of manufactured homes resulting in increased market value of rentals
Every $5,000 of increased home cost = only ~$31 of required rent to maintain yield based on current rent comparables
Tax Advantage: Shorter depreciation life of manufactured homes
Quality & Maintenance: Structural strength of manufactured homes on par with conventionally built homes
Monthly internal inspections ensure rigorous ERC maintenance standards
Leveraging technology and personnel to closely monitor communities
Some manufactured homes are 30 and 40+ years old, proving their sustainability. All ERC MHR homes will be brand new, with an advantageous combination of allowable depreciable life and practical longevity
Gerald “Jerry” was the Founder and General Partner of Ell-Cap Manufactured Home Communities, acquiring over 100 properties totaling more than 40,000 rental units across 26 states. Principal in over $900 million of transaction value.
Ryan has 25+ years experience in real estate development, general contracting, and construction management in single-family, multi-family, and commercial real estate. He has completed transactions totaling approximately $600+ million of value.
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