And homes in Elkhart seem likely to grow in value. “It's a surprisingly strong market, and has had a growing population for the last five years or so,” Baskin says. The city is a world leader in the production of recreational vehicles, and the revival of the US auto sector has brought even more optimism to Elkhart.

UMH is far from the only investor that sees manufactured housing as attractive. In fact, the once-niche market has started attracting some big players. Last summer, 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.

“There is always a demand for affordable housing, and this is also a stable asset class,” Baskin explains. “You're not dealing with renters, but people who own their homes and just rent the land.” And some of the larger investment funds “have seen that and entered the space in the last 24 months.”

ELKHART, IN—UMH Properties Inc. just became the latest player in the housing market to expand its holdings in manufactured homes. The Freehold, NJ-based company bought two such communities in Elkhart, IN: Parke Place Estates, a 364-site all-age community and Boardwalk Retirement Community, a 195-site, 55-plus age-restricted community. Together, the two properties, which sold for a total of $24.4 million, occupy approximately 155 acres and feature 559 home sites.

“They have been eyeing the properties for a while,” Kyle Baskin, first vice president, investments, in Marcus & Millichap's Cleveland office, tells GlobeSt.com. UMH owns several other manufactured housing communities in the growing city, and that made purchasing these two a golden opportunity.

Baskin, along with Jonathon McClellan, first vice president, investments, and Michael DiCillo Jr., associate, represented the seller and procured the buyer. Josh Caruana, vice president and regional manager of the firm's Indianapolis office, is Marcus & Millichap's broker of record in IN.

“Finding 559 high-quality sites anywhere is difficult,” Baskin adds, “especially at a relatively reasonable price.”

And homes in Elkhart seem likely to grow in value. “It's a surprisingly strong market, and has had a growing population for the last five years or so,” Baskin says. The city is a world leader in the production of recreational vehicles, and the revival of the US auto sector has brought even more optimism to Elkhart.

UMH is far from the only investor that sees manufactured housing as attractive. In fact, the once-niche market has started attracting some big players. Last summer, 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.

“There is always a demand for affordable housing, and this is also a stable asset class,” Baskin explains. “You're not dealing with renters, but people who own their homes and just rent the land.” And some of the larger investment funds “have seen that and entered the space in the last 24 months.”