Sierra Vista was built in 1985, is 99% occupied and includes a soccer field.
SANTA FE, NM—It seems that no area of the country is immune to the lack of affordable housing, which could also be said of Santa Fe. While modulars have taken on uses including student housing, offices and classrooms, another viable option is manufactured housing such as the type found at Sierra Vista, a level 4 mobile home community.
Included in the 229 units are 22 community-owned homes. The property was built in 1985, is 99% occupied and includes amenities such as a leasing office, a soccer field, playground and RV/boat storage area.
Hunt Real Estate Capital recently provided a Fannie Mae conventional multifamily loan in the amount of $13.7 million to refinance the manufactured housing community. The loan has a 10-year term with a 30-year amortization period and 114 months yield maintenance.
“Sierra Vista is located in an area with a diverse mix of residential and commercial properties. Due to home values and apartment rents across Santa Fe, the city has been pushing for affordable housing options,” Josh Messier, managing director at Hunt Real Estate Capital, tells GlobeS.com. “Sierra Vista fills that void.”
The borrower is a diversified real estate investment firm.
“The borrowers have extensive experience investing in manufactured housing properties and have successfully owned and operated Sierra Vista for 30 years,” notes Messier. “Over their long history in the sector, the borrower has owned and managed over 15,000 pads across 45 parks. They are also a repeat Hunt Real Estate Capital client, which enabled them to rate lock and close quickly in a rising interest rate environment.”
According to the Manufactured Housing Institute, the manufactured housing industry produced about 93,000 new homes in 2017, approximately 9% of new single-family home starts. The average sales price of a new manufactured home without land is $70,600. Of the existing communities, 66% are located on private property and 34% are in manufactured home communities.
All aspects of construction are continually inspected by professionally trained third-party inspectors. Manufactured homes have been constructed to adhere to the federal HUD Code since 1976. The HUD Code regulates home design and construction, strength and durability, fire resistance and energy efficiency.
HUD revised the building code in the early 1990s to enhance energy efficiency and ventilation standards and improve the wind resistance of manufactured homes in areas prone to hurricane-force winds.
Floorplans are available that range from basic to elaborate, with vaulted or tray ceilings, fully equipped kitchens and walk-in closets. A variety of exterior siding is available from metallic, vinyl, wood or hardboard and stucco. Homes have pitched roofs with shingles and gabled ends. Upgrades include awnings, patio covers, decks, site-built garages and permanent foundations.
The building materials in today's manufactured homes are the same as those in site-built homes. Manufactured homes are among the safest housing choices available today due to federal laws requiring smoke detectors, escape windows and limited combustible materials around furnaces, water heaters and kitchen ranges, notes the Manufactured Housing Institute.
For more information on multifamily news, join GlobeSt.com at RealShare Apartments in Los Angeles from October 29-30, 2018. RealShare Apartments brings together the industry's top owners, investors, developers, brokers and financiers as they gather for THE MULTIFAMILY EVENT OF THE YEAR! This conference leverages the strength of ALM's Real Estate Forum and GlobeSt.com which reports daily on the multifamily sector. Register for RealShare Apartments.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
