Flagship MHC Portfolio

Expertise and Deep Agency Knowledge Win the Day in MHC Financing

Manufactured housing communities play an essential role in addressing the affordable housing crisis in the U.S., but MHC financing can be complex. Navigating the nuances of this asset class requires expertise and deep understanding of agency programs such as Fannie Mae’s Credit Facility for manufactured home development and preservation.

Walker & Dunlop leveraged that expertise for a client with a large multi-state MHC portfolio.

The Situation

Preferred correspondent Security Mortgage Group client, Flagship Communities REIT approached our team of MHC specialists for help. Flagship is one of the largest owner/operators of manufactured housing communities in the country with nearly 70 communities covering nearly 12,000 manufactured housing lots. The firm has 60+ years of experience developing and managing MHC throughout Kentucky, Indiana, Ohio, Tennessee, Illinois, Arkansas, and Missouri.

Flagship was seeking to establish a long-term financing vehicle for the purpose of positioning the firm for future growth, managing debt across Flagship’s entire MHC portfolio, and servicing its long-time financing needs.

The Solution

Andrew Tapley, Senior Managing Director; Alex Huffman, Managing Director; and Matt Restivo, Senior Director led our team to quote, negotiate, and close a Fannie Mae Credit Facility with Flagship Communities. Partnering with our team, Flagship was able to establish a long-term credit facility that permits a combination of variable- and fixed-rate debt with laddered maturities and flexible post-closing features. These features allow Flagship to manage complex and changing business strategies and achieve its long-term MH goals.

The Results

Our debt financing work led to the closing of four separate credit facility tranches covering 2,260 total manufactured housing pad sites across 13 assets and 3 states (Ohio, Kentucky, and Indiana) and those numbers continue to grow.

Flagship chose to implement Tenant Site Lease Protections, a program offered by Fannie Mae to preserve the affordability and stability of Manufactured Housing Communities. Among other objectives, the program:

• Ensures tenant protections such as a one-year renewable term for the site lease.
• Provides the tenant a five-day grace period for late rent payments.
• Restricts the Borrower from increasing rents without a 30-day written notice.

Flagship was recently awarded the 2022 Manufactured Housing Institute Excellence in Manufactured Housing Award. Walker & Dunlop is excited to play a part in Flagship’s continued growth and excellence in the manufactured housing space, while also working to create and preserve affordable housing across multiple states.

Are You Interested in Working with Us?

If you have a manufactured housing community project or an entire MHC portfolio in need of financing, we can’t wait to work with you. Please contact us to discuss your unique needs.