- Brookfield sold nearly 80 mobile home parks totaling 4.76K units for $1.6B and is discussing selling 80 more properties.
- RHP Properties, one of the nation’s largest mobile home park owners, was among the buyers, acquiring 21 parks with a $272.7M loan from Freddie Mac.
- The national price per unit for mobile home properties has more than doubled this year, rising from $64,296 in 4Q23 to $138,125 per unit in 4Q24.
- Mobile home rents continue to climb, with a 6.2% growth rate this year, even as financing challenges persist due to high borrowing costs.
Brookfield (BN) has begun paring down a portfolio of over 160 mobile home parks it acquired in 2017.
In fact, according to CoStar, Brookfield has already sold nearly 80 mobile home parks for $1.6B amid rising investor interest in manufactured housing.
Behind The Deal
The sale of nearly 80 parks for $1.6B reflects surging demand for manufactured housing, driven by the mounting need for affordable housing and rising property values. Brookfield is also in active talks to sell another 80 parks.
Among the buyers is RHP Properties (RHP), the third-largest owner of manufactured home sites in the US. With a $272.7M loan facilitated by Freddie Mac (FMCC), RHP acquired 21 mobile home parks.
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Investor Interest Grows
Manufactured housing has gained traction with investors as an affordable housing solution, with the average price per unit doubling in the past year.
Despite challenges in financing due to rising borrowing costs, the total sales volume for mobile home parks in 2024 reached $2.4B, on par with 2023 levels.
Rising rents on pad sites for mobile homes, which have grown 6.2% this year, continue to fuel investor interest. Experts anticipate more aggressive buyers as financing conditions improve and demand for affordable housing remains strong.
Growing Portfolio
RHP Properties’ recent acquisitions total 4,757 units with a 7.3% vacancy rate. The properties’ appraised values have risen 21% since they were last financed in 2021.
However, RHP is also divesting properties, including a $330M sale last month to Canada’s QuadReal Property Group for a portfolio in Texas, Florida, and Utah.
Looking Ahead
The sale underscores the resilience of manufactured housing as an asset class in a challenging real estate market.
With continued investor interest and rising rents, mobile home properties remain a key focus for firms like Brookfield and RHP, even as financing hurdles persist.
