Seven transactions close in the last 7 months, illustrating the growing investment and lender interest in the manufactured housing sector
SAN DIEGO, October 22, 2020 – JLL Capital Markets announced today that it has arranged more than $118 million in financing in separate transactions for seven manufactured home communities totaling 1,038 home sites in Southern California.
JLL worked on behalf of various operators to secure fixed-rate financing through various lenders, including Fannie Mae, Freddie Mac, life insurance companies and a regional credit union.
Additional property and loan details are below:
• Pacific Sunset and Western Skies, Anaheim – $24.4 million total, long-term, non-recourse life insurance company loans
• Tumbling Waters, Covina - $9.96 million, 30-year, fully amortizing Fannie Mae loan
• Confidential Inland Empire all-age community - $57.2 million, 2.35% fixed-rate, 10-year, full term interest-only Fannie Mae loan
• Beachwood Park, Dana Point - $13.5 million, 10-year fixed-rate at 2.4%, Fannie Mae, five years interest-only
• Stardust MHC, Ventura - $7.24 million, 2.74% fixed-rate, 10-year, non-recourse Freddie Mac loan
• El Capitan MHC, El Cajon - $6.38 million, seven-year regional credit union financing, three years interest-only
The JLL Capital Markets team representing the various borrowers on all seven transactions was led by Managing Director Zach Koucos.
“We continue to see lender and borrower appetite for the manufactured housing space increase as the sector has seen strong occupancy growth and rent growth stability,” Koucos said. “Our recently released Manufactured Housing Trends Report addresses this trend and examines the industry’s resiliency through the pandemic with notably positive trends when compared to other asset classes within commercial real estate.”
JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities.
