Our advisors offer a wide range of professional services to the business community. We have decades of experience brokering complex transactions. We know the Florida market, so whether your real estate needs are straightforward or present a challenge, you can trust Nye Commercial to deliver results.
Nye Commercial has over 20 years of Florida mobile home cooperative experience. Our professionals have assisted residents in the successful formation of stable and successful cooperatives around the state. Shareholders and non-shareholders have benefited from our “team approach,” which allowed residents to purchase properties with enough community participation and equity to achieve sustainable financing. Our history with cooperatives has given our advisors the experience necessary to understand the structure of these partnerships and the challenges that face resident owned communities today.
For years, residents have benefited from the cooperative structure used to own manufactured housing communities in Florida. However, shareholders are facing many challenges today. The mobile home business has become extremely capital intensive. Homes and infrastructure are deteriorating, leaving communities with expensive capital improvement projects. As communities age, cooperatives are losing homes and renters, causing a drop in the number of shareholders. Furthermore, the shareholders that remain are competing with “renters” to sell their homes. Share prices are making homes very difficult to sell. The result is a decline in home values in the community and, ultimately, a decline in the value of the entire property.
Another major issue facing resident-owned communities today is the need to refinance. Properties that were financed years ago have loans coming due in the next few years which, because of the changes in lending standards, will be very difficult to extend. Cooperatives not able to refinance risk foreclosure and the loss of shareholder equity.
Cooperatives are in a very unique position to control the sale of their communities. Age-restricted, manufactured home communities in Florida are in extremely high today. High demand and low-interest rates create a very strong seller’s market. Selling today will maximize shareholder value. Furthermore, as owners of the community, cooperatives are in a position to negotiate very favorable terms including locking in long-term lease agreements (thereby controlling future rents) with extremely stable, national MHC owners. Residents have the ability to “choose” their landlord to make sure that the new owner has the financial stability and experience to manage, operate, and reinvest in the community.