UMH Properties Inc. has entered into a joint venture agreement with Nuveen Real Estate for the development or acquisition of new prefabricated housing communities across the United States. The initial capital commitment is $ 170 million.
UMH Properties will own a 40 percent stake in the business and will serve as a managing member and an operating member. In addition, the company will collect customary costs associated with the management of property and assets.
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In a prepared statement, UMH Properties President and CEO Samuel Landy estimated that some 5.5 million new manufactured homes are needed across the country to meet demand. The number rises to 6.8 million if you consider obsolete properties. He added that the joint venture partners intend to invest significantly in the development and acquisition of new prefabricated housing communities across the country to help alleviate the affordable housing crisis. Depending on 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 has entered into an agreement to purchase three upcoming communities comprising a total of 804 sites in Florida for approximately $ 90 million. The first property is expected to include 219 sites, with a purchase price of $ 23 million. The deal is expected to be concluded by January.
In early June, UMH Properties acquired Bayshore Estates in Sandusky, Ohio. The 206-site prefabricated housing community traded for more than $ 10 million.