(Bloomberg) — Blackstone Group Inc. is pouring more money into mobile-home parks, a nook of the business actual property market that’s holding up within the pandemic.
The choice asset supervisor is in unique talks to amass roughly 40 parks from Summit Communities for about $550 million, in line with folks with information of the matter. Nearly all of the properties are situated in Florida, mentioned a few of the folks, who requested anonymity as a result of the transaction isn’t public.
Actual property funding belief Solar Communities Inc. was among the many bidders for the Summit portfolio, a few of the folks mentioned.
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Blackstone is ready to make the funding by means of a automobile often known as Blackstone Actual Property Earnings Belief, or BREIT, and plans to spend cash upgrading the properties, together with shared services corresponding to swimming swimming pools, one of many folks mentioned.
“Although our investments on this asset class are very restricted, we’re proud to companion with a greatest in school operator and plan to speculate important capital into these communities – that are largely occupied by seasonal residents and retirees – to create prime quality housing in locations the place folks wish to dwell,” a consultant for Blackstone mentioned in a press release.
The deal, which isn’t last and should fall by means of, comes after Blackstone invested in mobile-home parks earlier this yr. The New York agency paid round $200 million for seven parks, largely in Florida and Arizona, owned by Legacy Communities, in line with folks conversant in that deal.
Representatives for Summit, Solar and Legacy didn’t instantly reply to requests for remark.
In the course of the pandemic, transactions involving mobile-home parks have outpaced different corners of the business actual property market as traders keep away from harder-hit sectors corresponding to retail and resorts. Greater than $800 million price of the properties modified fingers within the second quarter, up 23% from a yr earlier, in line with a report from JLL.
Blackstone operates the properties — often known as manufactured-housing communities — by means of a platform often known as Treehouse Communities that was co-founded by Dallas Tanner, the chief government officer of Invitation Houses Inc., a former Blackstone holding.
The typical value of a brand new manufactured residence within the U.S. was $86,900, in line with U.S. Census Bureau information that was final up to date in April.
Blackstone made its first manufactured-housing guess in 2018, snapping up 14 communities bought by Tricon Capital Group Inc., Bloomberg reported on the time.
The agency owns lower than 1% of the manufactured housing market.
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