Where Capital Meets Insight

Heartstone Capital invests in real estate strategies that deliver high yields, downside protection, and mission-aligned impact with a scalable and straightforward development plan. We are particularly focused on the affordable homeownership segment, including manufactured housing and other opportunistic strategies in underserved markets.

Our Strategy Includes:

Asset Classes:

Manufactured Housing and small-scale residential development.”

Structures:

We invest through a fund vehicle using a combination of common equity, preferred equity, and joint venture capital tailored to each opportunity’s needs and risk profile.

Geographies:

Underserved secondary and tertiary markets with growing or stable residential populations.

Investment Horizons:

Opportunistic based on strategy and asset class, but 3 – 10 year periods are typical.

Why We Focus on Resilient Housing?

Structural undersupply across the nation Limited new development Strong alignment between investor returns and social need

Strategy Benefits:

1. Accelerated Capital Recycling

Our projects are typically structured to return up to 80% of principal capital within 36 months of investment through strategic capital events. This reduces holding risk and enhances capital efficiency.

2. Reduced Development Risk & Compressed Timelines

We focus on horizontal infrastructure development only, avoiding budget overruns and delays associated with vertical construction. This streamlined approach results in faster delivery, lower cost volatility, and more predictable outcomes.

3. Product-Market Fit

Over 60% of Americans are priced out of traditional homeownership. Our investments directly address this affordability gap, offering attainable ownership opportunities.

4. Resilient Demand Across Market Cycles

Affordable housing demand is insulated from economic downturns. Manufactured housing has historically demonstrated stable occupancy and income performance, even during broader real estate contractions.

5. Long-Term Resident Retention

Manufactured housing communities benefit from highly “sticky” tenant bases. The cost and complexity of relocating a home leads to significantly longer tenures, supporting consistent cash flow, providing highly visible revenue streams, and reducing turnover-related expenses.

6. Lean Operating Model

With our fund primarily focused on owning the land underneath resident-owned homes, operating expenses remain structurally low. Maintenance responsibilities are minimal compared to traditional multifamily assets, enabling stable margins and limited capex exposure.

7. Regulatory & Financing Tailwinds

Zoning reform, infill incentives, and growing municipal support have improved development feasibility. In parallel, GSEs like Fannie Mae and Freddie Mac are expanding financing options including chattel loan adoption, further improving liquidity and institutional acceptance of the asset class.”