HARRI5 Brokers $38M MHC Deal in Arizona
Lument provided nearly $21 million in acquisition financing.
Sun Communities Inc. has sold The Reserve at Fox Creek, a 311-homesite manufactured housing community in Bullhead City, Ariz., according to Mohave County public records.
Keith Management purchased the property for $37.8 million and Lument provided a $20.9 million acquisition loan, the same source shows. HARRI5 brokered the off-market deal.
The Reserve at Fox Creek is a 55-plus, pet-friendly manufactured housing community at 2350 Adobe Road. Its amenity package includes a fitness center, swimming pools, a clubhouse, a game room, a bocce ball court, a library, a dog park and walking trails, as well as barbecue areas.
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Resident programs include creative and social activities such as water aerobics, shuffleboard, bingo, billiard and crafting. Community dinners and other social events are also included.
The Reserve at Fox Creek is close to Sun Valley-Bison-Fort Mohave Airport and 7 miles the Laughlin-Bullhead International Airport. Additionally, with Interstate 40 being 17 miles away and U.S. Route 163 nearby, the community provides easy access to Las Vegas, Los Angeles and Gilbert, Ariz.
A unicorn deal
HARRI5 Founder & Principal Derek Harris arranged the transaction. Harris told Multi-Housing News that The Reserve at Fox Creek was a unique opportunity for Keith Management to acquire a five-star manufactured housing community from a public REIT. “These deals are unicorns and rarely come to the market,” he added.
Harris went on to say the mobile home sector in Arizona is very strong and the demand is extremely high. “However, there is limited opportunity to acquire institutional-quality communities”, he mentioned.
“(The) majority of properties are owned by large institutional groups which do not sell, while the remaining assets are owned by families or family offices which have them for 30 years or more. They didn’t sell during the sector’s peak, in 2022, and are not inclined to sell now,” Harris pointed out.
Since 2015, HARRI5 has brokered $2 billion in MHC transactions across the U.S. The firm is active in several states including Arizona, California, Colorado, Florida, Georgia, Nevada, North Carolina, South Carolina and Texas.Â
In May, HARRI5 arranged the $10 million sale of Imperial Manor, a 200-homesite manufactured housing community in Lakeland, Fla. The buyer was Bedrock Communities, which also used an acquisition loan for the purchase.