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UMH Grows through JV, Gains First Florida Community
by MHInsider
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the organization’s first community in Florida. Photo courtesy of UMH Properties. UMH Properties employees oversee the delivery and installation of new homes at Sebring Square,
UUMH Properties, in its new joint venture with Nuveen Real Estate, UMH Properties, in its new joint venture with Nuveen Real Estate, has closed its first acquisition of a newly developed, all-age manufactured home community in Sebring, Fla.
The JV paid $22.2 million for the property on approximately 39 acres with 219 developed homesites.
“We are happy to announce the acquisition of our first newly developed manufactured housing community through our joint venture with Nuveen Real Estate. This is UMH’s first community in the Florida market,” UMH President and Chief
Executive Officer Samuel A. Landy said. “The demographics in Florida are exceptional and we look forward to providing this market with high quality affordable housing. We also have two additional to-be-developed communities in the Florida market under contract and we anticipate further growth of our acquisition pipeline.” »
The other two communities will enter development in early 2022 with a plan for new homes to be made available in 2023.
“We have three or four deals in the pipeline currently, and ideally we’d like to keep a constant pipeline of sites at about that level coming through,” UMH Vice President and COO Brett Taft said.
The New Partner for UMH Properties
Nuveen, a TIAA company, brings an initial capital commitment of up to $170 million for the projects. UMH will have a 40% stake in the venture and serve as the managing member and operating member of the joint venture.
UMH will earn customary fees associated with property and asset management, the New Jersey-based company said in a public release.
“We have long been advocates for the development of new communities and are pleased to have found a partner who understands and shares our vision,” Landy said. “This joint venture gives us the financial capacity to develop and acquire new manufactured housing communities, creating long-term shareholder value while limiting the short-term impact on our FFO during construction and lease-up.”
Landy said Nuveen has an in-depth understanding of the company, the manufactured housing industry, and the real estate market.
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“We are excited to work with them to continue our mission of providing the country with a much-needed supply of affordable housing,” he said. “Our country needs at least 5.5 million new homes to keep pace with demand, with that number increasing to 6.8 million when considering obsolescence.
“Through this joint venture, UMH and Nuveen Real Estate intend to make significant investments in developing and acquiring new communities to help to ease the affordable housing crisis,” Landy said.
UMH Properties will have the right to purchase from the joint venture the communities they plan and develop after a pre-determined period of time.
The three to-be-built communities UMH has entered into agreements on in Florida would offer an added 804 homesites a total purchase price of approximately $90 million.
UMH Properties was organized in 1968 and is a public equity REIT that owns and operates 127 manufactured home communities with more than 24,000 developed homesites in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina, and now one in Florida with Nuveen. MHV
