Market News

JPMorgan Chase Originates $489M Loan for MHC Portfolio Deal

Time : April 30,2021 Source:Source:

Horizon Land Co. has spent $743.3 million to buy a portfolio of manufactured housing communities, a self storage property and RV pads across the country. The company financed the acquisition through a JPMorgan Chase-originated $488.6 million first lien acquisition loan, an additional $40 million mezzanine financing and $258.8 million of sponsor equity.

The portfolio comprises 93 manufactured housing communities totaling 11,129 pads that include:

•10,897 manufactured housing pads
•194 RV pads
•38 site-built homes
•a self storage facility with 136 units.

The collection spans 13 states and 29 markets—including Dallas; St. Louis; Austin, Texas; and Omaha, Neb. The assets were completed between 1920 and 2000.

Given the growing demand for affordable housing and a significant lack of new supply, the manufactured housing sector is experiencing a surge in investor interest. The industry proved its resilience last year, when both rents and sales activity were on the rise despite pandemic-induced hurdles.