Legacy Pays $26M for Duluth MHC
A Freddie Mac loan facilitated the acquisition.
Legacy Communities has paid $25.5 million for Vintage Acres, a 300-homesite manufactured housing community in Duluth, Minn. GHI Investments sold the asset that was more than 97 percent occupied at closing.
Northmarq worked on behalf of the seller and also arranged a $14.4 million acquisition loan for the buyer. The fixed-rate, Freddie Mac note has a maturity date set in 2031.
Vintage Acres is a 1985-built community at 501 W. Stowe St. The 94-acre property is close to State Highway 23, providing easy access to Interstate 35. Downtown Duluth is 11 miles away.
The all-age, pet-friendly community includes resident-owned homes, two apartments, boat and RV storage, 14 self storage units and off-street parking. Amenities include a community center, playground area, office space and basketball court.
Northmarq Senior Vice President Ari Azarbarzin and Senior Associate Anthony Pino represented GHI Investments. In addition, the firm’s Executive Vice President and Regional Managing Director Dan Trebil, together with Vice President Logan McCarthy, arranged the financing for the buyer.
MHC still attractive
Manufactured housing continues to attract lenders and investors due to its stable operating models. Despite a rise in affordability concerns, the sector benefits from strong levels of occupancy, consistent rent growth and limited new supply, while also providing the possibility of affordable homeownership, long-term resident retention and stable cash flow.
As a result, lenders remain confident in this property type’s long-term fundamentals. Most originations are linked to acquisitions and refinancing.
In April, a partnership between RHP Properties and an institutional capital partner secured an $830 million acquisition and refinancing loan for a 36-property manufactured housing collection. The portfolio includes 8,340 homesites with occupancy above 99 percent.
