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Pillar Arranges $172M for Mobile Home Park Portfolio

SAN CLEMENTE, CA— Working with Yale Capital advisors, the 10year term credit facility allowed for acquisition of 11 parks with more than 5,3000 sites.

By David Phillips | davidphillips | | Updated on August 31, 2016

SAN CLEMENTE, CA— Pillar , an industry leader of financing solutions for affordable and market rate multifamily and healthcare properties, says that it has originated a $172 million fixed-rate , 10-year term credit facility through Fannie Mae for the acquisition of 11 manufactured housing community (MHC) properties. The portfolio consists of 10 highly-rated MHC properties located in Michigan and one MHC property in Alabama .

Ten of the 11 highly rated parks are in Michigan, and one is located in Alabama. Ten of the 11 highly rated parks are in Michigan, and one is located in Alabama.
Arthur Tuverson , managing director of Pillar’s MHC/RV Resort Group located in San Clemente , sourced the portfolio through Yale Capital Advisors , a key Pillar mortgage broker based in Miami, Florida. The financing closed on August 5. “We were excited to close such a large portfolio for one of our key clients and to again work with Yale Capital,” said Tuverson. “The Fannie Mae credit facility will allow for future acquisitions to be added to the portfolio and includes flexible structuring options as the borrower executes on their business plan.” The 10 Michigan-based MHCs included a total of 5,352 sites with varying amenities and occupancy rates. All Michigan properties feature attractive clubhouses/leasing offices and many offer swimming pools and fitness centers. Several MHCs are situated lakeside and offer RV storage. Eight of the Michigan-based MHC properties are located within 30-60 miles north/northwest of Detroit , one MHC is located 8 miles south of Grand Rapids and one MHC is located 10 miles north of Kalamazoo . Six of the Michigan-based MHC properties are rated 4-star or higher. Head of Lending Operations for Yale, Chris San Jose said, “Pillar and Yale Capital’s combined MHC expertise allowed us to provide a tailored solution that surpassed the borrower’s expectations and ultimately secured the best financing possible for such an institutional sized MHC portfolio.” The portfolio also included Green Park South MHC, a 3-star, all-age MHC built in 1965 that is located 20 miles south of Birmingham in Pelham, AL . The property features 415 sites with 10% double-wide homes, a clubhouse and swimming pool. The property was 100% occupied at time of close. “The entire market for commercial real estate financing realizes that MHCs are one of the steadiest asset classes in the market today. Therefore, we are seeing extremely aggressive lender competition for well-located properties and quality sponsorship in this asset class,” added San Jose.

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