UMH Properties Acquires Ohio Manufactured Home Community for $19M
The deal involves the 101-acre property that includes 824 developed homesites of which approximately 46% are occupied.
PERRYSBURG, OH—UMH Properties Inc., which is headquartered in Freehold, NJ, has acquired the Friendly Village manufactured home community here for approximately $19.4 million.
The deal involves the 101-acre property that includes 824 developed homesites of which approximately 46% are occupied.
Friendly Village is the third community acquired from a four-community portfolio. UMH expects to close on the fourth community in the third quarter of this year. It also reports it has two additional communities under contract, which should close in the third quarter as well.
Samuel A. Landy, president and CEO of UMH Properties, says, “The acquisition of Friendly Village further strengthens our presence in the Perrysburg, OH market. We are particularly excited about the value-add potential of this community. It is located across the street from a Fiat Chrysler manufacturing plant, a Walgreens distribution center and a brand-new First Solar manufacturing plant.”
He adds, “Given the area’s strong employment demand and population density, we are confident in our ability to improve occupancy and overall operations which should result in significant value creation. Friendly Village also adjoins another UMH Community that we acquired in the fourth quarter of 2018. Together, these two communities total 1,015 developed homesites, generating managerial efficiencies created by the economies of scale.”
Earlier this month, UMH Properties announced it had completed the financing/refinancing of three of its communities, Southwind Village, Woodlawn Village and Oxford Village, through Wells Fargo Bank, N. A. for total proceeds of approximately $38.8 million. These Federal National Mortgage Association (Fannie Mae) mortgage loans have 10-year maturities with principal repayments based on 30-year amortization schedules. Interest on these mortgage are at 3.41%. Proceeds from these mortgages were primarily used to repay the existing 5.94% mortgages, which had a total balance of approximately $11.6 million.
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 119 manufactured home communities with approximately 22,300 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland and Michigan. In addition, the company owns a portfolio of REIT securities.