Federal Capital, Horizon Collect Manufactured-Home Communities

Federal Capital Partners and Horizon Land Co. have increased the amount of their joint manufactured homes holdings with a new portfolio acquisition.

In an $88 million deal, Federal Capital Partners and Horizon Land Co. LLC have purchased a 2,413-site portfolio of 11 manufactured-home communities, primarily in western New York, the buyers announced Monday.

The largest of the communities is Gypsum Mills, a 560-site, five-star community in Victor, N.Y., in the Rochester area. M&T Bank provided the senior debt financing for the acquisition, which closed last Friday.

“This acquisition substantially increases our joint portfolio, takes our partnership into an expanded geography, and provides an important building block for continued growth,” Ryan Hotchkiss of Horizon said in a release.

The deal brings the two companies’ total manufactured housing holdings to 32 communities with approximately 5,600 home sites.

Nationwide, high investor demand for manufactured-housing communities “has pushed prices upward and compressed cap rates in most markets,” according to a second-half 2014 report from Marcus & Millichap.

In the Northeast specifically, resident demand for affordable housing drove vacancy down by 30 basis points, to 8.7 percent, over the previous 12 months. Average rents in the region climbed 3.4 percent to $451 per month over the same period, which was the third consecutive year of gains, according to the report.