Flagship Communities REIT Expands with New Kentucky Acquisition
Flagship Communities Real Estate Investment Trust Expands Presence
Flagship Communities Real Estate Investment Trust (TSX: MHC.U, TSX: MHC.UN) has recently made headlines with its acquisition of a 504-lot manufactured housing community, further cementing its footprint in the affordable housing sector. This strategic move marks another significant milestone in the company’s journey towards creating thriving communities.
Details of the Acquisition
The 504-lot community, acquired from Empower Park, LLC, represents a promising addition to Flagship's portfolio. This well-structured deal includes funding through current cash reserves and approximately $17 million in assumed debt at a favorable average interest rate of 3.5%. Such financial planning underscores the REIT's commitment to sustainability and growth.
Improvements Made by Empower
Prior to the acquisition, Empower undertook considerable renovations, emphasizing the community's vitality. They removed around 50 older homes to make way for newer options, installed various amenities, renewed sewer lines, resurfaced roads, and decommissioned an outdated wastewater treatment facility. These enhancements not only modernize the community but also boost its attractiveness to potential residents.
Growth Strategy in Action
Kurt Keeney, President and CEO of Flagship, highlighted that this acquisition is aligned with the REIT's growth strategy. By focusing on the expansion within existing operational areas, the company can effectively develop economies of scale and enhance operational efficiency. The newly acquired community is poised to offer residents desirable home ownership options that signify the ongoing evolution of manufactured housing.
Welcoming New Residents
Currently, the community boasts a 71.8% occupancy rate, revealing an excellent opportunity for further growth. New homeowners are already settling into the community, which is equipped with amenities that cater to modern living, including municipal-grade playgrounds, basketball courts, a dog park, and a community center. The environment encourages family-oriented living and creates a strong sense of community.
Strategic Location Benefits
This manufactured housing community is strategically located near major highways I-75 and I-64 in Central Kentucky. Its proximity to key employers and highly rated schools enhances its appeal, making it not just a place to live but a desirable location for families seeking affordable housing options. Nathan Smith, Chief Investment Officer, remarked on how this community perfectly aligns with their acquisition criteria, as it is situated in a prime area they are familiar with.
About Flagship Communities Real Estate Investment Trust
Flagship Communities Real Estate Investment Trust stands out as a key player in the affordable housing market, dedicated to providing quality living experiences primarily for working families. Their operations span across multiple states, including Kentucky, Indiana, Ohio, Tennessee, Arkansas, Missouri, West Virginia, and Illinois. The focus on family-oriented communities reflects their mission to not only provide homes but to create thriving neighborhoods.
For any further inquiries regarding Flagship Communities, please reach out to:
Eddie Carlisle, Chief Financial Officer
Flagship Communities Real Estate Investment Trust
Tel: +1 (859) 568-3390
Frequently Asked Questions
What is the significance of Flagship's latest acquisition?
This acquisition enhances Flagship’s portfolio, offering potential for increased occupancy and improved community amenities.
How does this acquisition align with Flagship's strategy?
It aligns with their goals by allowing growth within known markets, fostering economies of scale, and operational synergies.
What improvements were made to the community prior to acquisition?
Significant renovations included home removals, new amenities, sewer upgrades, and road resurfacing to modernize the living space.
How is the occupancy rate of the new community?
The community currently has an occupancy rate of 71.8%, indicating positive growth potential.
Where is the community located?
It is located near major highways in Central Kentucky, close to essential amenities such as schools and employers.
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