UMH Properties Inc. has entered into a joint venture agreement with Nuveen Real Estate for the greenfield development or acquisition of new manufactured housing communities across the U.S. The initial capital commitment is $170 million.
UMH Properties will have a 40 percent stake in the venture and will serve as managing member and operating member. Additionally, the company will collect customary fees associated with property and asset management.
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In a prepared statement, UMH Properties President & CEO Samuel Landy estimated that some 5.5 million new manufactured homes are needed nationwide to keep up with demand. The number increases to 6.8 million when considering obsolete properties. He added the joint venture partners intend to invest considerably in developing and acquiring new manufactured housing communities across the country to help alleviate the affordable housing crisis. According to the partnership, UMH Properties will have the right to acquire some of these communities from the joint venture after a certain period of time.
In addition, UMH Properties entered into an agreement to purchase three upcoming communities comprising a total of 804 sites in Florida for roughly $90 million. The first property is set to include 219 sites, with a purchase price of $23 million. The deal is expected to close by January.
At the beginning of June, UMH Properties acquired Bayshore Estates in Sandusky, Ohio. The 206-site manufactured housing community traded for more than $10 million.
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