January 25, 2021 12:00 PM
Newmark announces the sale of the Midwest MHC Portfolio, a 21-property, 2,789-site manufactured home community portfolio located throughout Illinois, Indiana, Kentucky, Nebraska and Wisconsin. The $100 million portfolio had a physical occupancy of 83 percent.
Newmark Executive Managing Director Andrew Shih and Senior Managing Director Todd Fletcher, co-founders of Newmark’s Manufactured Housing Group, in cooperation with local brokers, represented an undisclosed seller. The Midwest MHC Portfolio traded to buyer, OZ Impact Funds, a Salt Lake City-based private investment group focused on acquiring and rehabilitating distressed manufactured home communities. The $100 million acquisition increased OZ Impact Funds’ portfolio by 30 percent.
“Our institutional client created a lot of value in filling sites and transforming operations at the properties over the last few years, but they eventually decided they were not going to remain long-term in these markets,” said Shih. “It allowed this private fund buyer an opportunity to quickly gain scale in their fast-growing portfolio.”
“While this attractive five-state portfolio was stabilized near 80 percent occupancy, it still provides value-add upside through filling sites, kick-started by the vacant park-owned home portfolio that came with the sale,” added Fletcher.
According to the National Low Income Housing Coalition, due to the global pandemic slowing construction, the U.S. is experiencing a shortage of more than seven million homes for extremely low-income renters. Every state and metropolitan area across the nation faces a shortage with only 36 affordable and available rental homes existing on average for every 100 extremely low-income renter households.
“By acquiring these 2,789 sites across the Midwest, OZ Impact Funds hopes to help ease the gap of affordable housing by improving the communities and providing safe, clean living for low-income renters,” said Shih.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements About Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.