FCP Expands in New Jersey with New Purchase

WASHINGTON, DC-Federal Capital Partners has been steadily expanding beyond its traditional investment asset class of multifamily, with a new focus on manufactured housing, and outside of its traditional geographic home base of the Mid-Atlantic, with recent investments in North Carolina and Pennsylvania. Now it is pushing further north with its first investment in New Jersey: the acquisition of a manufactured housing community in Egg Harbor Township.

FCP began investing in manufactured housing last year via a joint venture with Horizon Land Co. This latest purchase is of Tilton Terrace, a 228-site manufactured home community located on more than 50 acres that is eight miles from downtown Atlantic City. This acquisition is the largest by FCP in this sector to date and brings the FCP/Horizon portfolio to a total of 16 Mid-Atlantic communities with approximately 2,300 sites.

Earlier this year FCP Vice President Drew Odabashian told GlobeSt.com that FCP expects to invest about $50 million in this asset class in 2013. The company doesn't plan to form other strategic relationships in this category, he said—meaning it will continue to make these purchases via Horizon Land.

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.

As for the new investment in New Jersey, it was an opportunity to invest "in a stable, well-maintained and thoughtfully developed community that provides a strong discount to single-family home prices in the neighboring areas," Odabashian says.

New Jersey's stock of manufactured home communities is among the lowest in the nation and this property should continue to attract residents seeking a quality, affordable community close to transportation and job centers.”