The Broadway Company (TBC) has a proven track record of successful real estate investments, primarily in the multifamily and manufactured housing sectors. Since its inception, TBC has demonstrated a commitment to delivering strong, risk-adjusted returns for its investors.

Accredited investors invest in single purpose entities that take title to the investment. The investments are tax efficient, all while generating consistent and durable economic returns.

Manufactured Housing Investments can be extremely tax efficient for real estate professionals and those with significant passive income

Each investment LLC will take advantage of bonus depreciation through the preparation of a cost segregation study for each deal. We anticipate that the first-year depreciation on the property, which flows through to individual investors, will allow for the initial write-off of approximately 35% of the total cost of asset (inclusive of debt). A tax loss of between 50%-65% of the initial investor capital invested will be generated as a loss, pari-passu per investor. Tax losses that flow through to individual investors will be classified as passive losses which are available to offset passive income. Passive losses that are not currently deductible are carried forward to future years and are available to be used against future passive income. The ultimate sale of the investment at a profit should generate passive income to investors. For those investors that meet the real estate professional rules, losses from the investment should be currently deductible. Investors should make sure to consult their CPA first to see how their tax loss will be treated based on their filing status.

Manufactured Housing Investments – Committed to maintaining affordability

The Broadway Company acquires existing manufactured housing with the goal to maintain communities as affordable housing. Although we do not provide internal restrictive rent cap covenants, the rents in our communities are affordable. In most cases, lots rents will not exceed rent levels established by the applicable state housing agencies for households earning 80% of Area Median Income (AMI). We calculate this by modeling occupancy costs, which include the lot rent, monthly utilities, and an imputed chattel mortgage payment for the home. Even though manufactured housing provides affordable options for individuals and families in communities nationwide, media coverage of manufactured housing is frequently and sometimes overwhelmingly dismissive or negative, specifically to companies that purchase these properties. Several manufactured housing communities need improvements that have not been made by their existing owners, who are generally “mom and pop”. With the increasing number of acquisitions of manufactured housing communities by established and professional housing ownership and management companies, some residents naturally become concerned about the uncertainty and about their futures, which can likewise lead to inaccurate and negative descriptions in the media. In fact, responsible and committed ownership, like The Broadway Company, will mean long needed improvements take place and promise more secure and better futures for residents. TBC not only seeks to solidify the role of manufactured housing as a high-quality, cost effective alternative to the high and increasing costs of single-family, but also focuses on managing these communities more efficiently. Our management and ownership will provide transparency and responsiveness to the needs of our residents, and creativity in taking steps to better the communities for the benefit of current and new residents.