WASHINGTON, DC-Earlier this year Federal Capital Partners tried something new. Long an investor in multifamily, the company decided to expand into the related area of manufactured housing. It snapped up a 1,358-pad manufactured home portfolio in North Carolina, Maryland and Pennsylvania for $29.5 million from Horizon Land Co. The deal was structured as a JV between FCP and Horizon.

Now the company has expanded this JV with acquisitions of two manufactured home communities in Delaware and North Carolina for a combined investment of $7.5 million. The acquisition is part of FCP’s larger plan for this sector–that is, to expand its presence in the Mid-Atlantic, FCP Senior Associate Drew Odabashian tells GlobeSt.com. But it also is emblematic of another nuance to its manufactured home strategy—namely, to go to market with a strong portfolio of existing properties. “We didn’t set out on a business plan to push occupancy, as in purchasing new homes and selling them to residents,” Odabashian says. “That would be a flawed approach right now.”

Indeed, fundamentals in the manufactured housing space are in flux right now, as outlined recently in the Wall Street Journal. Shipments of manufactured homes are declining and mortgage rates for buyers are much higher than for traditional homes.

That said, FCP likes the business—when it is dealing with a largely occupied portfolio of existing properties. “It is a logical extension of FCP’s multifamily business,” Odabashian says. “There is an acute shortage of affordable housing stock in this country and there are growing numbers of low-income renters.” FCP has its eye on markets in which it is already located, such as North Carolina, as well as new markets such as Southern New Jersey and South Carolina, he says.