A majority of Fox Point-based Asset Development Group has been sold to California investment firm West Partners.
Asset Development Group, which has 120 full- and part-time employees, owns and operates 53 manufactured housing communities in Wisconsin, Minnesota, Iowa and Michigan. Its consumer brand is Home Source One. ADG, founded in 1986, also offers insurance brokerage, tenant home financing and leasing and home brokerage help to residents of its communities. The company has $24 million in annual revenue.
West Partners makes controlling interest investments of between $10 million and $100 million in privately held firms with strong management teams in growing markets.
Jim Reitzner remains minority owner and chief executive officer at ADG, and all of its employees will remain on board in the transaction. He declined to disclose the percentage or sales figures for the majority stake.
“One of the key considerations was our ability to access expansion capital,” Reitzner said. “West Partners gives us basically an unlimited capability to expand the portfolio and the footprint from basically a Midwest to possibly a national scope.”
While specific communities have not been determined, ADG is evaluating acquiring new properties in the Midwest and the West regions.
With the new ownership and expansion plans, ADG is in the process of moving from 5,500 square feet of leased space at 8050 N. Port Washington Road to almost 10,000 square feet it recently purchased at N86 W14041 Beacon St. in Menomonee Falls. The company is investing $300,000 in renovating the space and plans to move in by the end of April. It will have room to hire more employees in the new space.
“We have the capability to take on existing locations and manage additional properties with our existing staff,” Reitzner said. “However, we are going to be increasing the acquisition side of our business going forward and so we’ll add additional staff in that department.”
Milwaukee-based Robert W. Baird & Co. Inc. advised Asset Development Group in the transaction, terms of which were not disclosed.
“Manufactured housing is an attractive niche in the U.S. residential market, serving the growing need of affordable housing. We are excited to partner with a capable and experienced management team led by Jim Reitzner that shares our dedication to creating value over the long term,” said Art McGill of West Partners.
