The manufactured housing asset class started out as a small niche play for investors, intrigued by its credit quality and similarity to the apartment market — sans the high price points.

The space landed with a thud on global investors' radar this summer when Denver-based Yes! Communities, a portfolio of opportunistic real estate funds managed by Stockbridge Capital Group, recapped its three manufactured housing portfolios in a $1 billion deal.

Stockbridge sold a 71% equity interest in the assets to two global institutional investors, one of which was GIC, the sovereign wealth fund of Singapore.

WASHINGTON, DC–Federal Capital Partners and Horizon Land have doubled down on their goal of increasing their exposure to the manufactured housing asset class, closing on a $106 million investment fund for this product type.

The fund, called Horizon MH Communities Fund I, LP, will be used to invest in manufactured housing throughout the US. With leverage it will have $350 million in total purchasing power.

The fund has already closed on 25 investments representing $48 million of fund equity for a total value of $160 million. FCP and Horizon first began investing together in 2012. Since then, according to FCP Managing Partner Tom Carr, the companies have closed 57 transactions.

$1B Deal Marks Manufactured Housing as Institutional Investor Worthy

The manufactured housing asset class started out as a small niche play for investors, intrigued by its credit quality and similarity to the apartment market — sans the high price points.

The space landed with a thud on global investors' radar this summer when Denver-based Yes! Communities, a portfolio of opportunistic real estate funds managed by Stockbridge Capital Group, recapped its three manufactured housing portfolios in a $1 billion deal.

Stockbridge sold a 71% equity interest in the assets to two global institutional investors, one of which was GIC, the sovereign wealth fund of Singapore.