Manufactured Housing Fills Void in Tertiary Markets

CITRUS HEIGHTS, CA—Mobile home communities fall into two categories: age-restricted communities and family communities. While both types of communities offer affordable housing, the former are not dependent on employment opportunities and often located in tertiary locations. A property fitting this description recently received a $47 million Fannie Mae Delegated Underwriting and Servicing loan.

The refinance of mobile home park, Lakeview Village, includes a 10-year term with 30-year amortization. Greystone facilitated the lending process. The loan was originated by Tim Thompson, director in Greystone's San Francisco office with Bob Mallett of Marcus & Millichap as a correspondent on the transaction.

“This long-term financing enabled the owner to take advantage of attractive terms from Fannie Mae and receive cash out for future improvements and investments,” said Thompson.

The asset is a 531-pad park developed in 1977. The five-star age-restricted community is spread across a 131-acre wooded site. The property's amenities include a recreation center, service kitchen, dining/multi-purpose room, billiards room, fitness center, library, heated pool, spa, lake and green spaces.

“Manufactured housing serves an important role in the affordable housing arena as the homes in a manufactured housing community typically cost less than site-built homes on both a square-foot basis and in total. The agencies' regulator, FHFA, recognizes the important role that safe and sound manufactured housing communities contribute to the manufactured housing industry and has included manufactured housing community loans under the agencies' duty to serve goals and excluded these loans from their production caps,” Jerry Muir, a managing director who joined Greystone from Fannie Mae, tells GlobeSt.com. “MHCs are often referred to as land lease communities as the borrower owns the land, infrastructure and amenities, and then leases home sites or pads to the residents who own their homes.  MHCs fall into two categories: age-restricted communities and family communities. While both types of communities offer affordable housing, age-restricted communities are considered a lifestyle decision, usually have extensive amenity packages, not dependent on employment opportunities and often are located in tertiary locations. Family communities are by definition an affordable living option and the residents are dependent on the local economy for employment opportunities.”

CITRUS HEIGHTS, CA—Mobile home communities fall into two categories: age-restricted communities and family communities. While both types of communities offer affordable housing, the former are not dependent on employment opportunities and often located in tertiary locations. A property fitting this description recently received a $47 million Fannie Mae Delegated Underwriting and Servicing loan.

The refinance of mobile home park, Lakeview Village, includes a 10-year term with 30-year amortization. Greystone facilitated the lending process. The loan was originated by Tim Thompson, director in Greystone's San Francisco office with Bob Mallett of Marcus & Millichap as a correspondent on the transaction.

“This long-term financing enabled the owner to take advantage of attractive terms from Fannie Mae and receive cash out for future improvements and investments,” said Thompson.

The asset is a 531-pad park developed in 1977. The five-star age-restricted community is spread across a 131-acre wooded site. The property's amenities include a recreation center, service kitchen, dining/multi-purpose room, billiards room, fitness center, library, heated pool, spa, lake and green spaces.

“Manufactured housing serves an important role in the affordable housing arena as the homes in a manufactured housing community typically cost less than site-built homes on both a square-foot basis and in total. The agencies' regulator, FHFA, recognizes the important role that safe and sound manufactured housing communities contribute to the manufactured housing industry and has included manufactured housing community loans under the agencies' duty to serve goals and excluded these loans from their production caps,” Jerry Muir, a managing director who joined Greystone from Fannie Mae, tells GlobeSt.com. “MHCs are often referred to as land lease communities as the borrower owns the land, infrastructure and amenities, and then leases home sites or pads to the residents who own their homes.  MHCs fall into two categories: age-restricted communities and family communities. While both types of communities offer affordable housing, age-restricted communities are considered a lifestyle decision, usually have extensive amenity packages, not dependent on employment opportunities and often are located in tertiary locations. Family communities are by definition an affordable living option and the residents are dependent on the local economy for employment opportunities.”