Tuverson aims high in new role at Pillar

Arthur Tuverson has joined Pillar as a managing director to spearhead the expansion of the firm’s Manufactured Housing Community/RV Resort Group.

The industry veteran will rely on the company’s multiple product lines — Fannie Mae, Freddie Mac, HUD, CMBS and life insurance lenders — to exponentially grow the platform.

The group currently has about $350m of assets under management, but Tuverson told Real Estate Capital there will be no limit to growth.

“The idea is that we will continue to grow,” he said. “The target could be $2bn and $3bn, but I wouldn’t put a cap on it.”

Tuverson’s experience will serve him well. He previously helped create a similar platform at GE Capital, building up a $1.8bn manufactured housing loan portfolio during his 17 years at the firm.

Manufactured housing (a.k.a. mobile home) and RV (recreational vehicle) lending generally involves smaller loan amounts than the multifamily sector: between $5m and $20m, Tuverson said. The loans, generally long-term, between five and 10 years, generate returns between 3.5% and 5%.

Borrowers typically own the land the housing communities are built on, performing various upkeep and maintenance duties on behalf of homeowners.

“This industry has always been attractive to me because it’s made up of a collection of family-run businesses,” Tuverson said. “It also makes good business sense because when you specialize in this niche area you become a go-to source.”

Tuverson is based in Irvine, California.