WASHINGTON, DC-Federal Capital Partners has made its first acquisition in the manufactured home space this year via its existing joint-venture with Horizon Land Co. LLC: 75 pads in Delaware for $2.7 million. With this deal under its belt, the JV's portfolio now consists of a total of 13 Mid-Atlantic communities of approximately 1,700 pads.
All together FCP expects to invest about $50 million in this asset class this year, FCP Senior Associate Drew Odabashian tells GlobeSt.com. The company doesn't plan to form other strategic relationships in this category, he adds—meaning it will continue to make these purchases via Horizon Land. "That partnership is working out great," he says.
The manufactured housing asset class was not that great a leap for FCP, which deep roots in the multifamily space. Manufactured housing addresses the acute shortage of affordable housing stock in the US and the growing numbers of low-income renters. That said, the space does have its issues: shipments of manufactured homes are declining and mortgage rates for buyers are much higher than for traditional homes.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
