Investor demand for manufactured home communities continues
JLL Capital Markets arranges a $46.44M refinance of a 17-property portfolio in the Phoenix area
SAN DIEGO, September 16, 2020 – JLL Capital Markets announced today that it has arranged $46.44 million in financing for a manufactured housing portfolio totaling 1,050 home sites within 17 manufactured home communities in the Phoenix and Tucson metropolitan areas.
JLL worked on behalf of the borrower, a joint venture partnership between an institutional investor and Treehouse Communities to secure the three-year, floating-rate loan through a balance sheet bridge capital source. Loan proceeds were used to recapture equity and provide funds for capital improvements to the properties.
The portfolio comprises 16 communities well-located in the Phoenix area and one property in the Tucson MSA. All the communities have convenient access to major highways and Interstates 10 and 17. Of the 1,050 home sites, 179 of the homes are park-owned.
As one of the fastest growing metros in the nation, Phoenix has nearly doubled in size since 1990 and ranks seventh in population growth this decade. The city is forecasted to remain a top growth market for the next five years due to strong employment and in-migration and remains the top market for multifamily rent growth in the nation.
The JLL debt placement team leading the financing efforts included Managing Director Zach Koucos and Director Chris Collins as well as Senior Managing Director Jeremy Womack.
“Due to rising single family home prices, manufactured home communities have experienced strong occupancy and revenue growth and as a result, rising investor interest,” noted Koucos.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of nearly 93,000 as of June 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Treehouse Group
Treehouse Group was founded by proven real estate professionals with expertise across all segments of the real estate industry, including extensive experience in repositioning non-performing Assets. Since its founding in 2006, Treehouse Group has launched multiple funds and made numerous strategic alliances in order to amass the portfolio that it currently holds today. The Treehouse Group is broken up into four distinct branches, Investment management, Property Management, Contracting and Capital markets that combined account for the employment of approximately 50 real estate professionals.