Pillar originates $172m MHC loan

Pillar has originated a $172 million fixed-rate, 10-year term credit facility through Fannie Mae for the acquisition of 11 Manufactured Housing Community (MHC) properties, 10 in Michigan and one in Alabama.

Arthur Tuverson, managing director of Pillar’s MHC/RV Resort Group located in San Clemente, California, sourced the portfolio through Yale Capital Advisors, a Pillar mortgage broker based in Miami.

He said the credit facility will allow for future acquisitions to be added to the portfolio and “includes flexible structuring options as the borrower executes on their business plan.” Pillar declined to name the borrower. 

The 10 Michigan-based MHCs include 5,352 home sites, many offering swimming pools and fitness centers, several situated lakeside and offering RV storage, and six rated 4-star or higher.

The Michigan MHCs include the Cranberry Lake in White Lake; Royal Estates in Kalamazoo; Grand Blanc Crossing in Grand Blanc; and Holly Hills in Holly. Eight are located within 30-60 miles of Detroit, one is eight miles south of Grand Rapids and one is 10 miles north of Kalamazoo.  

The Green Park South MHC in Alabama is a 3-star community built in 1965 and located 20 miles south of Birmingham in Pelham, Alabama. The property features 415 home sites and was 100 percent occupied at close.

Head of lending at Yale Capital Advisors, Chris San Jose, said in a statement: “The entire market for commercial real estate financing realizes that MHCs are one of the steadiest asset classes in the market today. Therefore, we are seeing extremely aggressive lender competition for well-located properties and quality sponsorship in this asset class.”