The Saratoga Approach
Saratoga Group is uniquely positioned for growth as we acquire the heavy value-add communities that many institutional investors avoid. Our transformation strategy includes streamlined home infill, implementation of best-in-class management practices, and in-house construction expertise.
Strategic Principles
01
We Hold Communities Long-Term
Out of the original 105 communities, we have only sold one. Manufactured housing communities provide significant short-term returns and consistent long-term dividends. Investor's commit capital for 10 years but may choose to benefit in perpetuity.
02
We Acquire Value-Add Communities
The average community is around 60% occupied at the time of acquisition. Generally, these communities are cash flow positive at acquisition. We see the vacancy in newly acquired properties as an opportunity to quickly increase property revenues through basic infill.
03
We Transform Communities
The value-add communities we purchase require infrastructure improvements and amenity upgrades. Some of these communities also have vacant land adjacent, allowing for the development of new lots. We are vertically integrated with a construction company, Community First Construction. This team provides cost-effective and quality construction solutions for our communities.
04
We Build Technological Advantage
Our internal technology and analytics teams have built gold-standard dashboards to measure and track operational KPIs. These dashboards integrate with our property management, accounting, and maintenance systems to provide our leadership with a clear view of community performance.
Transformation Projects
Many communities we acquire need intensive infrastructure upgrades and significant home infill. Some communities provide us with the opportunity to expand the development. Below are a few case studies displaying the transformation nature of these projects.
Major Capital Projects
Development
Home Renovations & Infill
Market Selection
We focus on markets where there is a need for affordable housing and where we can achieve attractive yields. This has led us to acquire communities in the Midwest and Southeast. Some economists refer to this area as "The Golden Triangle." Reshoring manufacturers are moving their operations to this area and e-commerce companies are building their infrastructure and warehouses here. This migration brings stable, low-income homeowners to our communities. Building our portfolios around centers of strength allows us to keep costs low through local economies of scale.
