Patriot Holdings Launches $25MM Patriot Fund II to Acquire Manufactured Housing, Self-Storage, and Industrial Assets

Patriot Holdings, LLC (“Patriot”) announces the launch of Patriot Fund II, an alternative commercial real estate investment fund that will be used to acquire manufactured housing, self-storage, and industrial facilities across the U.S. Patriot will raise up to $25 million from investors to acquire, redevelop or construct these types of facilities. Patriot Fund II is Patriot’s second investment fund. Its first investment fund was a $15 million fund that received a surplus of interest and was closed to new investors on May 31, 2020.

Patriot has extensive experience with a best-in-class track record. Based on its experience and extensive due diligence on the manufactured housing, self-storage space, and industrial sectors, Patriot is positioned well to execute its proven strategy in these asset classes to achieve outsized returns for its investors. According to data from the National Association of Realtors, the median price of an existing single-family home rose 23% from a year ago, representing the largest increase on record. This is causing surging demand for the affordable housing provided by manufactured housing communities. Similarly, the U.S. self-storage market is a booming $22 billion industry, with 1-in-10 households now paying for self-storage at an average amount of $87/month.

The strategy of the Patriot Fund II will be to acquire off-market assets owned by non-institutional owners, located in stable or growing economies. There is a limited window of opportunity for these value-add assets to be bought and sold, because institutional buyers and private equity companies are entering the sector and over-paying for “mom and pop” owned assets that have tremendous upside. Patriot is uniquely positioned to secure these value-add opportunities at competitive prices and terms and has a robust pipeline of such opportunities, because its internal acquisitions team has been cultivating off-market deal flow for over a decade. Patriot also has the distinct advantage of being able to aggregate its self-storage assets under the unified brand, All Purpose Storage, and its growing portfolio will command a substantially higher value than the assets could sell for individually.

Additionally, Patriot’s first fund, Patriot Fund I is performing above expectation: all capital was deployed within 15 months; it produced a 15.7% Cash-on-Cash Return (based on if the investment was made by January 1, 2020) in Year 1 for its investors, well above the mandated preferred return of 10.0%; and it successfully cleared $1 million in profits from disposition events (while still holding over 90% of assets under management in the portfolio), allowing it to begin returning initial invested capital to its investors ahead of forecasts. Given the strong performance of Fund I, Patriot anticipates that many existing investors will be reinvesting into Fund II.

In a statement from Jeremiah Boucher, Founder of Patriot Holdings, “Individuals who align with Patriot’s investment vision can invest for a minimum of $50,000. They will own equity stakes in recession-resistant assets while benefiting from strong monthly cash flows, tax advantages, leverage, price appreciation, and surging institutional demand for these asset classes.”

Additional information on Patriot Holdings and Patriot Fund II may be found at PatriotHoldings.com.