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Join us as we disrupt the fastest growing segment in Real Estate
Help answer the call for Affordable Housing with Build to Rent
ERC Communities is a pioneer build-to-rent (B2R) real estate development company wholesaling mini-neighborhoods of affordable single-family, manufactured homes. Led by senior executive experience of over 100 combined years and $1 billion in construction experience, the company is at the forefront of the emerging B2R boom. Help us answer the call for affordable single family homes offering approximately 25% to 35% reduction in rental costs in a safe, sustainable environment.
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- 10% Annual Tax Deferred Dividend, Paid Quarterly
- Equity Upside in Preferred Stock
- Fastest Growing Segment of Real Estate Investments
INVESTMENT & MARKET DETAILS
3.8 M DEFICIT OF HOMES*
Why ERC Communities?
A surge is underway in development of subdivisions of single-family homes and townhomes “built for rent” (abbreviated as “BFR”), and they are being leased faster than developers can build them.
The problem is that the homes being built for rent are typically at a price point that is higher than many households can afford comfortably.
The strategy of developing manufactured homes for rent can help greatly in meeting this societal need, and in a manner that pays strong dividends to the developer.
Today’s manufactured homes are of a considerably higher quality, and more appealing than those of decades past. If the rent is significantly lower than for competitive site-built homes, this study concludes that there will be exceptionally strong demand for these rental homes.
OUR UPCOMING LOCATIONS
ERC's initial development strategy
focuses on several key Florida markets
Tampa Metro: Tampa, Brandon, Riverview, Seffner, Plant City, Zephyrhills, Wesley Chapel, Pasco County, Ellenton and Bradenton
Central Highway 4: Lakeland and Orlando metro area
Sarasota Metro: East Sarasota, Port Charlotte, North Port, Punta Gorda, Venice and Englewood
South Gulf Coast: Ft. Myers, Cape Coral
Jacksonville Metro
Broke Ground Q4 2022 in Zephyrhills:
39575 North Ave, Zephyrhills, FL 33542
A Unique Approach
Cost Control
Fully developed cost of an ERC MHR community is approximately 60% to 70% of the cost of a conventionally built single family home community
Direct material and labor costs lower as they are factory-built
Land allotment is approximately 1/3 less than what is needed in conventionally built homes
Speed to Revenue
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Horizontal” nature of land development and construction (underground, paving, and landscaping only), makes sites available sooner
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Homes can be moved into the community faster, and in groups
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Homes are made available for rent sooner
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ERC anticipates that most homes will have lease contracts in-place prior to being transported to the community
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Once homes are set up, rent collection can immediately commence
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ERC projects 100% occupancy of its developments that are 100 units or smaller within 12 months
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Zoning & Entitlements
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ERC’s MHR communities will be developed outside of core urban areas where higher and better uses of land are more likely, resulting in lower land costs and faster entitlement processes
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According to surveys, monthly rent savings of $1,000 is worth as much as 15 to 20 minutes of additional commute to renters
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ERC will seek entitlement of land that is “a bit further out” and not in competition for higher zoning uses
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The ERC development team will ensure that proper zoning and entitlements can be achieved before acquiring land for new development
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Affordability
The KEY to the ERC MHR platform strategy is to address the strongest and broadest market demand
Focus on extensive need for separate family living in 3-bedroom / 2-bathroom homes approximating 1,400 square feet
Homes that are affordable for entry-level families
Of particular concern in the in-migration states of the Southeast, where single-family home prices and rental levels are increasing materially
Approximate $1,000 / month savings afforded in ERC’s MHR communities allow for a broader, deeper market of potential renters
SCALING STRATEGY
ERC seeks to develop numerous manufactured home rental communities, targeting a run-rate of 3,000 homes per year in the next 3+ years
We are here to answer your questions !
Product Overview
Cost: Average cost per home estimated at ~$65,000; all-in development cost of ~$160,000 providing solid basis for profitable rentals and scaling
Home Build: Prioritization on structural integrity over optional amenities
Standard Features include hard-surfaced floors (no carpets), wider exterior walls (2” X 6” vs 2” X 4”), senior grade insulation, full FEMA-code storm protection
Demand driving up the cost of manufactured homes resulting in increased market value of rentals
Every $5,000 of increased home cost = only ~$31 of required rent to maintain yield based on current rent comparables
Tax Advantage: Shorter depreciation life of manufactured homes
Quality & Maintenance: Structural strength of manufactured homes on par with conventionally built homes
Monthly internal inspections ensure rigorous ERC maintenance standards
Leveraging technology and personnel to closely monitor communities
Some manufactured homes are 30 and 40+ years old, proving their sustainability. All ERC MHR homes will be brand new, with an advantageous combination of allowable depreciable life and practical longevity
ERC Leadership Team
Gerald Ellenburg
ERC Chairman and Chief Executive Officer
Gerald “Jerry” was the Founder and General Partner of Ell-Cap Manufactured Home Communities, acquiring over 100 properties totaling more than 40,000 rental units across 26 states. Principal in over $900 million of transaction value.
Ryan Keonig
ERC President and Chief Development Officer
Ryan has 25+ years experience in real estate development, general contracting, and construction management in single-family, multi-family, and commercial real estate. He has completed transactions totaling approximately $600+ million of value.
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Locations
- Tulsa, Oklahoma
- Lubbock, Texas
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Contact
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- [email protected]
- 727.793.1667
*Hunter Housing Economics: A new analysis from Freddie Mac shows that the U.S. housing market is 3.8 million single-family homes short of what is needed to meet the country’s demand. (The National Association of Realtors has recently received some media attention with a 5.5 million unit shortage, but of the 5.5 million, 3.8 million are single-family
Legal Disclaimer
The offering will be made only by means of an offering circular. An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that ERC Communities 1, Inc. may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. The securities offered by ERC Communities 1, Inc. are highly speculative. Investing in shares of common stock of ERC Communities 1, Inc. involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. You may obtain a copy of the Form 1-A offering circular that is part of said offering statement here. You should read the offering circular before making any investment.
Forward-Looking Statements Disclaimer
The offering materials and this letter may contain forward-looking statements and information relating to, among other things, ERC Communities 1, Inc., its business plan and strategy, and its industry. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to the company’s management. When used in the offering materials, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements, which constitute forward looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause ERC Communities 1, Inc. actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. ERC Communities 1, Inc. does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.
Additional Disclaimers
*Since the tax treatment of any distributions may vary according to the financial performance of the company, as well as the particular circumstances of the investor, investors should consult their own tax advisers, and should not assume that the distributions will be subject to the same tax treatment from year to year. ERC Communities 1, Inc. will not generate revenues or profits until the company has built communities, and there is no guarantee that those communities will be profitable. There can be no guarantee of future profits.
**During the early years it is likely that dividend payments will be tax-free due to favorable real estate depreciation tax rules combined with the likely treatment of dividends as a tax-free return of capital to investors and thereafter as capital gains income for a limited period. The dividend will only be payable to the extent there are legally available funds. ERC Communities 1, Inc. does not offer tax advice. Investors should consult their own tax adviser for information regarding their own tax situations.
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