PGIM Hosts $ 178 Million Refi for MHC Portfolio

Photo by Matthew Ball on Unsplash

PGIM Real Estate has arranged $ 178 million of fixed rate debt on behalf of its Core Debt Strategy to Hometown America. The fixed rate debt is used to refinance the Company’s portfolio of five prefabricated housing units. The properties are located in the states of Massachusetts, New Jersey, Illinois and Florida.

All properties are stabilized. The five communities, which consist of a total of 1,731 sites, have an average occupancy of over 99 percent. Four of the five communities are age restricted properties. The pétanque courts are among the top-of-the-range equipment offered in the properties of the portfolio.

Trent Brown, Executive Director of PGIM Real Estate, led the origination effort on behalf of the company.

Upward trend

In a statement, PGIM officials observed that prefabricated housing increasingly offered tenants a cost-effective housing option. In addition, prefabricated housing provides investors with stable cash flow through all market cycles. Company officials added that this particular portfolio offers the benefit of recent renovations in its communities. It will also benefit from the positive demographic development of aging populations in each of the four market areas making up the portfolio.

Valuations in the manufactured home sector have continued their upward trend since the start of the pandemic. Some see the sector as a potential solution to the affordable housing crisis in the country. With its assembly line production, economies of scale and reduced waste, the sector offers a more cost effective way to produce housing.

Charlie Williams, executive vice president of Bellwether Enterprise, negotiated the transaction. Last month, Capstone closed the sale of Parkway Village, a 218-site manufactured home community in Nederland, Texas that had not changed hands for nearly three decades.


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