Blackstone Reportedly in Talks to Purchase Manufactured Dwelling Portfolio

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Blackstone Reportedly in Talks to Buy Manufactured Home Portfolio

The Blackstone Group is in exclusive talks to acquire around 40 parks from Summit Communities for approximately $ 550 million through its REIT, Blackstone Real Estate Income Trust. Sources have told Bloomberg.

After the acquisition, BREIT will invest in upgrades, including building shared facilities like swimming pools, a source told Bloomberg.

Prefab homes have become a valued asset class in the commercial real estate sector, one of the few categories that the pandemic did not bend. Indeed, In a recent report, JLL predicted that institutional investment activity in the prefabricated housing sector will increase as the sector's recessive resilience outperforms the majority of commercial property sectors.

Another example of the activity in this room comes from another Bloomberg report Private equity firm TPG is currently reviewing the sale of Strive Communities, a mobile home park operator that could raise $ 750 million or more.

In contrast to most other commercial real estate sectors, ratings for prefabricated housing communities are trending upwards, according to the JLL. The price per pad for the second quarter averaged $ 50,792, with favorable growth trends, up 6.6% from Q1 2020 and 26% year over year.

According to JLL, the volume of transactions in the second quarter of 2020 was $ 821 million. This corresponds to an increase of 12% compared to the total volume of the fourth quarter of 2019 and an increase of 23% compared to the volume of the first quarter of 2020. “This is a big difference in the investment trend for all commercial real estate. The second quarter of 2020 was $ 44.6 billion, down 68% year over year. This shows the confidence investors have in the prefab sector, ”says JLL.

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