Saratoga Group has closed on its latest opportunity zones fund, Fund IV, having raised more than the initial target of $15 million. Including one final acquisition, which awaits completion, the fund will include 14 mobile housing communities and more than 1,000 sites.
The properties are located in Bloomington, Ind.; Rockdale, Texas; Greenville, N.C.; Daytona Beach and Lakeland, Fla.; Albany, Ga. and Las Vegas. Saratoga has already paved four of them, with three other communities scheduled for repaving by the end of the summer. Other upcoming upgrades include solar street lighting, office renovations, children’s playgrounds, soccer fields and barbeque pavilions.
The portfolio has an average of 62 percent occupancy—with March, April and May being the highest months for move-ins, according to Sam Hales, Saratoga Group’s CEO. Hales also noted that rent collection has been strong during the pandemic.
The company expects to operate a total of 5,000 manufactured housing sites by the end of the year. In the first quarter of 2021, Saratoga Group plans to launch a third opportunity zones fund.