UMH Properties Inc. has secured a $10.2 million fixed-rate mortgage loan from Fannie Mae, arranged through Wells Fargo Bank N.A., to refinance existing debt at a 6.03% interest rate over a 10-year term.
The financing replaces a $2.8 million mortgage on a 267-site manufactured home community acquired by UMH in 2014 when occupancy stood at 69%. Through renovations and the introduction of a rental home program, occupancy at the property has since increased to 95%. The transaction generated $7.4 million in additional proceeds, which UMH plans to deploy toward acquisitions, expansions, and the addition of rental homes.
The company also intends to use a portion of the funds to retire higher-cost debt on a short-term basis. UMH operates 145 manufactured home communities with approximately 27,100 developed sites across 12 states, alongside a portfolio of 11,200 rental homes and over 1,000 self-storage units.
Samuel A. Landy, President and Chief Executive Officer of UMH, stated that the company’s long-term value-added strategy enables it to realize substantial increases in community value through refinancing and reinvestment in accretive projects.
UMH holds joint venture interests in three communities—two in Florida and one in Pennsylvania—partnering with Nuveen Real Estate on those holdings.
