Berkadia Arranges Refinancing for Five Manufactured Home Communities Throughout the Midwest

January 11, 2022

Berkadia Arranges Refinancing for Five Manufactured Home Communities Throughout the Midwest

January 11, 2022
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MHC Capital received $18.275 million for the cash-out refinance of 720 sites in Ohio, Michigan and Pennsylvania

DETROIT (January 10, 2022) – Berkadia announces it has arranged a bridge cash-out refinancing for five manufactured housing communities located in Ohio, Michigan and Pennsylvania. Senior Managing Director Mitch Sinberg and Senior Analyst Michael Basinski secured the financing on behalf of MHC Capital, the 74th largest owner-operator of manufactured housing communities in the nation.

Bayview Asset Management provided two bridge loans totaling $18.27 million for the five properties, containing 720 manufactured housing sites in total. MHC Capital completed community upgrades since acquiring the properties and this loan will help fund the business plan to reach stabilization.

“This is a creative loan solution that matches the Sponsor’s business plan and will enhance the returns to their investors,” said Sinberg.  “There is a growing appetite from the institutional capital markets to lend in the manufactured housing community space and our platform is built to service that industry. This was a great execution and we were grateful to represent MHC Capital and establish a relationship with one of the industry’s top-tier lenders.”

Investor demand for manufactured housing has increased since COVID-19 because the asset class performed relatively well during the height of the pandemic. Investors are seeking higher yields as other asset classes are experiencing lower returns due to competition and increased pricing. Manufactured housing communities offer investors relatively stable cashflows because the rents are affordable and the residents typically own their homes within the community.