US real estate investor Crow Holdings has acquired a 46-property manufactured housing portfolio for a value-add strategy with a plan to invest over $30m (€27.6m) to improve the portfolio.
The firm’s $3.1bn Crow Holdings Realty Partners X fund has acquired the 9,838-pad portfolio consisting of all-age manufactured housing assets located across Ohio, Missouri, Illinois, Indiana, Montana, and Florida.
The fund’s plan for the property involves committing over $30m within the first year for substantial renovations to the housing communities.
Bob McClain, CEO of Crow’s investment management arm Crow Holdings Capital, said: “Given the high cost of homeownership driven by increasing home prices and mortgage rates, manufactured housing communities are extremely attractive options for residents.
“Crow Holdings’ depth of experience in the sector has provided us with the relationships and capabilities to build a market-leading, nationwide manufactured housing platform.
“This investment strategy allows us to add to the quality housing stock of the communities where we operate and to provide residents a better place to call home.”
Dustin Viktorin, MD in the manufactured housing group of Crow Holdings Capital, said: “The planned investment of over $30m in capital improvements should provide a meaningful uplift in resident experience.
“These improvements are tailored to the needs of the communities, from improved safety – roads, lighting, fencing – to amenity renovations and additions based on resident feedback.”
Kristin Millington, MD in the manufactured housing and self-storage groups of Crow Holdings Capital, said: “The large demand for quality housing at attainable price points, coupled with the highly fragmented manufactured housing market, gives us the opportunity to add value to these properties and bring professional management to the communities.
“This portfolio is just one example of the attractive investments we’re identifying across this underserved asset class, which has seen negative net new supply in the past decade. As we continue to build our platform, we will provide meaningful improvements for residents and create more housing options in the places that need them most.”
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