OZ Impact Funds Spends $100M on MHC Portfolio
The deal comprises 21 communities located in Wisconsin, Nebraska, Illinois, Indiana and Kentucky.
OZ Impact Funds has paid $100 million for 21 manufactured housing communities from Strive Communities. The collection comprises 2,740 pads across Wisconsin, Nebraska, Illinois, Indiana and Kentucky.
According to OZ Impact Funds Managing Partner Greg Nelson, the company intends to implement value-add improvement programs at the newly acquired assets in order to offer both an alternative to renters looking for Class C apartments and high returns for investors. OZ Impact Funds already owned roughly 11,400 pads; the purchase increases the buyer’s portfolio by 30 percent.
New development of affordable housing has suffered from pandemic-imposed construction restrictions, worsening an already existing crisis. National Low-Income Housing Coalition data shows that there is a need for some 7 million homes for extremely low-income renters. Even though manufactured homes are more and more considered as a possible solution to the affordable housing shortage, the sector still struggles to overcome unique problems such as legislative regulation that hampers new development.