Capital Square 1031 has purchased Midway Estates, an over 55 manufactured housing community in Vero Beach, Fla. Public records show the company spent $12.9 million for the 183-site property. Walker & Dunlop originated an $8.4 million, 10-year Fannie Mae acquisition loan for the new owner.
Midway Estates occupies 28 acres at 1950 S. U.S. Highway 1, almost midway between Orlando and Fort Lauderdale. The community is within walking distance of several retail and dining choices, some 8 miles from Treasure Coast International Airport and Business Park, as well as 14 miles from Interstate 95. Common-area amenities include a heated pool, shuffleboard and activities clubhouse.
The new owner intends to invest $3.8 million in capital improvements. According to Louis Rogers, founder & CEO of Capital Square 1031, the average in-place homesite rent at Midway Estates was $585, roughly 27 percent below the market average of $720. The company will increase the in-place rents gradually through annual mark-to-market increases and also increases to the market average for new residents, Rogers said in a prepared statement.
Whitson Huffman, chief strategy & investment officer at Capital Square 1031, added in his prepared remarks that the company will increase occupancy by delivering new homes to sites that were vacant at the time of sale.
The buyer owns seven over 55 manufactured housing communities in coastal Florida markets. This spring, the company spent $61 million for Foxwood Village, an over 55 lifestyle manufactured housing community in Lakeland.