MANUFACTURED HOUSING INDUSTRY

L A R G E R

Carlsberg In The 20th Century

Carlsberg Management Company was one of the pioneers in the manufactured housing industry and has been one of the leading companies as the industry has grown over the last 30 years.

Carlsberg bought its first "mobile home park," as they were originally called, in 1970. Since then the company has purchased, developed, managed and sold, throughout the United States, more than 250 of what are now called manufactured home communities.

Carlsberg was the first company to have public security offerings for investment solely in manufactured home communities, raising more than $75 million during the early 1970's.

Carlsberg was, for many years, the largest owner and manager of manufactured home communities.

Some examples of solutions Carlsberg has brought to the management of manufactured home communities:

When offered a chance to take over a half-built park in Kansas saddled with construction liens and foreclosures, Carlsberg seized the opportunity. The construction was completed, legal issues resolved. The property was subsequently sold and is now in the portfolio of a major real estate investment trust.

The operation of one well-built property in Kentucky was discovered to be severely restricted by a private sewer that had failed, complete with federal and state violations. Carlsberg manufactured home personnel set about to have a new sewer system designed to meet the property's needs, supervised installation and put into operation to meet all the operating and regulatory approvals.

When faced with rent control in California, Carlsberg took the challenge, not only for itself, but also for the benefit of the industry as a whole. Appearances were made before rent control commissions and city councils with court appearances often required to get the best possible ruling for the investment. These favorable rulings then led to the negotiation of long-term leases that benefited both the owners and the residents.

Kissimmee, Florida In Kissimmee, Florida, Carlsberg developed a 500-space recreational vehicle park and a 700-space manufactured home community located five minutes from Disneyworld.

Carlsberg has always led the market, even when market conditions were depressed. One particular example was during the early 1990's when economic conditions in Texas were very much in disarray. The company set about on a program to purchase manufactured homes that had been foreclosed or repossessed, many in deplorable condition. These homes were refurbished, in some cases moved to new locations, then rented to fill vacant spaces and eventually sold.

Conversion from rental to ownership status is a frequent assignment. In several instances, Carlsberg has prepared the necessary subdivision ordinances and provided for the presentation to regulatory agencies that allowed land-lease communities to be subdivided and sold on a lot-by-lot basis.

Floods from the Missouri River and Mississippi River (at the same time), fires, earthquakes, and the ever-present tornadoes; Carlsberg has lived with them all. It is important in these disasters to take care of the residents, and everyone from the president on down gets involved with only that in mind.

Carlsberg has owned "mobile home parks" in 23 states and has had experience and relationships in all of them - invaluable experience.

Carlsberg In The 21st Century

Carlsberg Management Company has the experience and the support team that allows it to continue to make significant contributions to the industry. The objective of the company is to specialize in finding, acquiring, building and rebuilding, as well as managing manufactured home communities that have been overlooked by the large institutional owners. It has devoted itself to attacking difficult situations that, when solved, help the community to realize its full potential. Following are four examples of properties that illustrate this approach to the business:

Cannery Village
In discovering an old, small, 34-unit mobile home park in Newport Beach, Carlsberg realized that something more could be done with this parcel of leased land. Located on the coast of the Pacific Ocean, there was an opportunity to revitalize this 2-acre parcel to a higher and better use while maintaining the required residential character of it. Carlsberg purchased the property, negotiated with the existing residents to purchase their mobile homes and relocate them, and set about obtaining the necessary city and state permits to completely change the character. A new community was then planned with a new design of high-end, two-story manufactured homes, complete with patios and garages, and a small marina was rehabilitated to allow new owners to have boats with direct access to the water. This premium location, enhanced by more sophisticated design and construction, illustrates the progressive thinking that is typical of the Carlsberg operation.

Greeneleigh Villages

This 108 space property is located in Greeneville, Tennessee. It is only 40% occupied but the park is well located and has large lots. Our plan is to purchase new homes and rent them. There is a demand from families for housing in the area because of strong employment growth. Greeneleigh Villages is Carlsberg's newest effort to provide affordable housing in small towns. Visit Greeneleigh Villages Website

Keenland Farms
A 40-acre parcel of rolling land in eastern Tennessee was purchased in 1997. The site, with an outstanding view of the Smoky Mountains, attracted Carlsberg because a sewer line was under construction and would open up development. Work was undertaken to plan, obtain local approval and develop the property. Today, three years later, Keenland Farms is a thriving 200-space senior manufactured home community for active retirees. The property, including a beautiful clubhouse, was developed and built by Carlsberg and is now owned by an institutional investor.

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M O R E

 
Rancho Carlsbad
Rancho Carlsbad, one of the finest manufactured home communities in California, is a 504-space property with an equestrian center and golf course. Primarily because of poor management by the previous owner, the property was under control of the bankruptcy court when Carlsberg was called in for consultation. Prior to that the residents had attempted to acquire the property, but neither had the expertise nor the funds for such an undertaking. Carlsberg formed a unique partnership with the residents to jointly purchase the property through the bankruptcy court. Bulk financing was arranged and the park was subdivided into 504 individual parcels.
By mid-1999, 75 percent of the former rental spaces had been sold in fee simple and the original acquisition loan was paid. The owning residents now control the management of the community and have established their own rules. Carlsberg Management Company used a whole range of skills in bringing about successful completion of this substantial task. The following illustrates some of what was involved:

Financing - This required substantial creativity since few lenders will consider a project of such magnitude, The total value of the project was $35,000,000, or $70,000 per space.

Legal - Five law firms were involved since many of the issues that came up during the conversion process had never before been encountered.

Construction - The property had been allowed to deteriorate because of bankruptcy. Considerable investigative work was necessary before repairs and improvements were possible so as to make a fully operational property available to those residents who later purchase a lot.

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Silverlake Mobile Home Park
This 81-unit property located in a small town in eastern Tennessee was in bankruptcy and had serious sewer and water problems when Carlsberg discovered it. Even though the city was threatening to close the park, Carlsberg saw a potential that had eluded others. The rents were very low even though the market was strong and there was a demand for park spaces. This meant that if the operating problems could be solved, there was an opportunity to substantially increase the value of the property.

That process is now complete. Carlsberg purchased the property, installed a new sewer system, built new streets and rehabilitated the property. Rent levels are much higher and the residents have a much better living environment.

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Manufactured Home Sales

Carlsberg has also been a dealer of manufactured homes for many years. Presently, the company has two dealer locations in California.

Cannery Village Sales
151 Shipyard Way, Suite #2
Newport Beach, CA 92663
888-969-9667
Contact Cannery Village

The company has more than $3,000,000 in inventory for sale. This inventory as mentioned above, is the latest state of the art, two-story homes manufactured by the Silvercrest division of Champion Homes.

Rancho Carlsbad Home Sales
5200 El Camino Real
Carlsbad, CA 92008
800-808-8895
Contact Rancho Carlsbad

This office has sold more than $40,000,000 of manufactured homes and lots in the past three years in Carlsbad, California. The Rancho Carlsbad park is one of the finest communities in California and provides a wonderful retirement living environment for senior citizens.

Carlsberg Management Company has been a significant factor in the development and execution of many of the changes in the manufactured home business. The company plans to continue that participation and contribution into the 21st century. With the extensive experience gained over the years, Carlsberg will continue to provide, not only day-to-day management, but also search out opportunities for revitalizing existing properties and developing new ones.

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