In the 2020s, seniors housing investors will be forced to invest in communities designed and priced for the middle- to low-income seniors. One company, Capital Square 1031, is doing just that, acquiring an age-restricted manufactured housing community on the Peace River in Port Charlotte, Florida. This is the second such community in Capital Square’s portfolio, but won’t be the last.
The community has 147 units on 26 acres, with rents averaging $448 per month, or about a third less than the area’s average. About 38 units were vacant at the time of the sale, offering a value-add opportunity for Capital Square. Walker & Dunlop originated a $3.6 million loan from Fannie Mae, with a 10-year term, to fund the acquisition. Captial Square will also invest about $4.5 million in capital improvements to the property, including adding a new clubhouse, office, community center with a pool, and a new dock to take advantage of the riverfront setting.
