Wallet Watch: Hedge fund ‘like a shadow’ buying Michigan mobile home parks

Baltimore Terrace Mobile Home Park in Hastings on Monday, April 17, 2023. After the mobile home park was purchased by hedge fund-linked investment firm, some residents say the water quality is poor and repairs are being ignored while rent prices have increased. (Cory Morse | MLive.com)Cory Morse | MLive.com

Happy June, readers.

We did it. We survived (maybe, some of you thrived) during the grey, cold months, and now it's the season for long sunny days, swims in the Great Lakes and exploring our beautiful state. But if you want more summery chit chat, I’ll point you to our weather page.

Now, let's dig into economy news.

This week, we’re going to be talking about a secretive hedge fund buying up mobile home parks across Michigan, an asparagus farm that found a unique way to compete with international growers and summer gasoline rules.

Arnold Musser, 84, speaks inside his home at Baltimore Terrace Mobile Home Park in Hastings on Monday, April 17, 2023. After the mobile home park was purchased by a hedge fund, some residents say the water quality is poor and repairs are being ignored while rent prices have increased. "These new people that own the park are like a shadow," he said. "The only thing they did almost immediately upon taking over the park, they raised the rent $130 a month. That was an increase of almost a third." Musser has lived there for 20 years. (Cory Morse | MLive.com) Cory Morse | MLive.com

A hedge fund has found a new venture: mobile home parks.

Mobile homeowners across Michigan say rents jumped, maintenance declined and it became nearly impossible to move after their communities came under new ownership. Each park has been purchased by a different LLC, but breadcrumbs trail back to a $1 billion New York-based hedge fund called Alden Global Capital.

Suzanne Clevenger, 64, says conditions have worsened at River Springs Estates since she moved into a doublewide with her husband seven years ago. A flood devastated the Berrien Springs park in 2018. And now she says broken pipes have been a problem for two years – sewage in homes, water shutoff notices and boil advisories.

"There are dozens and dozens of deplorable mobile homes, doors open, windows out, skirting off, broken pipes, broken decks," Clevenger said. "I’ve never seen a park anywhere around Michigan look like this. It's absolutely the most disgusting thing I’ve ever seen."

Read more: A hedge fund bought Michigan mobile home parks. Things fell apart.

At Lincoln Park Mobile Home Village in metro Detroit, Terry Batson was evicted last month from his home of 17 years.

The park ownership claims Batson owes $1,409.83 after months of partially paying his lot rent. But Batson say he was never told his rent increased from $410 to $625. He kept paying $410 a month until eviction court papers arrived in April.

"I don't know if it's a money grab, a property grab or all of it all together," Batson said.

Alden Capital is often called a "vulture capitalist" or an investor that buys distressed companies and cuts cost or sells the businesses for parts to aggressively turn a profit. Notably, the hedge fund is known for gutting staff at newspapers like the Chicago Tribune or Denver Post.

"These new people that own the park are like a shadow," said Arnold Musser, 84, who has lived at Baltimore Terrace in Hastings for more than two decades.

Joe Prado and Dave Hansen watch as asparagus comes out of the TranSlicer cutter, where the vegetable was cut into cuts and tips at Michigan Freeze Pack, Michigan on Tuesday, May 23, 2023. (Joel Bissell | MLive.com)Joel Bissell | MLive.com

Oceana County has been called the "Asparagus Capital of the World."

With its proximity to Lake Michigan, the right temperature and soil make the county a lead producer of Michigan's 20 million annual pounds of asparagus, or two-thirds of the state's asparagus crop. But foreign producers are chipping away at Michigan's farm haven.

Americans consume more than 500 million pounds of asparagus each year but 80 to 90% is imported mainly from Mexico and Peru, according to the U.S. Department of Agriculture. Meanwhile, domestic production ticks down every year.

But Michigan farmer Joe Prado has found a competitive solution: asparagus nuggets.

"To me, it's a specialty," he said. "I have tasted asparagus from other places, even in the states, Mexico, Peru, and it doesn't taste the same."

Prado joins a growing trend of farmers entering the value-add market by taking their commodity crops and turning them into new products. To keep Michigan asparagus in the market, Prado uses all parts of the stalk to create a bite-sized, breaded bar snack.

"That's really our goal here to be able to be stay alive, be able to make this work for everybody," he said.

Read more: Michigan's deep-fried solution to beating Mexico in asparagus market

A bonus read: 5 facts about Michigan's ‘Asparagus Capital of the World’

As we discussed, summer is finally here.

But that also means seasonal gas rules are rolling out in an effort to reduce smog levels.

Starting June 1, gas stations in eight Southeast Michigan counties can only sell and dispense a summer-formula gas (does not exceed 7 pounds per square inch vapor pressure).

This summer-grade gasoline doesn't change from a liquid to a vapor as easily as the winter grade. It can cost more to produce, meaning you might see increases at the pump, but it also may offer a slight increase in fuel efficiency since it's slower to evaporate.

The summer gas program, established in 1996, impacts Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne counties, because the region failed to meet federal standards for ozone pollution.

Read more: Summer gas rules: What are they and who's affected in Michigan?

And here's a few more money-related stories for you:

If you purchase a product or register for an account through one of the links on our site, we may receive compensation.