NorthMarq Arranges $25.5 Million Sale of Vintage Acres Manufactured Housing Community in Duluth for GHI Investments

NorthMarq's Mid-Atlantic Investment Sales team has completed the $25.5 million sale of Vintage Acres, a 300-pad manufactured housing community located at 501 West Stowe Street in Duluth, Minnesota, the firm announced July 7. Phoenix-based Legacy Communities acquired the property from Duluth-based GHI Investments, which had owned and operated the community for more than 40 years. NorthMarq also arranged $14.435 million in Freddie Mac financing toward the acquisition.

Transaction Details: NorthMarq Represents GHI Investments in Competitive Bid Process

NorthMarq represented the seller, GHI Investments, in the transaction. The investment sales team was led by Senior Vice President Ari Azarbarzin and Senior Associate Anthony Pino. According to the firm, the sales process involved a lengthy bid sheet and multiple best-and-final rounds, which NorthMarq said allowed it to push pricing on the asset.

In addition to the investment sale, NorthMarq's Debt & Equity unit arranged $14.435 million in financing for Legacy Communities through a Freddie Mac loan. The mortgage brokers on that assignment were Dan Trebil, Executive Vice President and Regional Managing Director, and Logan McCarthy, a Vice President with NorthMarq.

"Vintage Acres is one of the highest-quality manufactured home parks in the state," said Anthony Pino. "Following a robust and competitive bidding process, the new owners were attracted by the rare opportunity to attain significant scale in the growing Duluth market. The property has a long history of providing the greater Duluth region with highly desirable, affordable housing by being continuously owned and operated by the same families for more than 40 years. We're confident that the new owners will build upon the legacy of the previous owners and serve as excellent stewards for the community."

Property Profile: Vintage Acres Manufactured Housing Community

Built in 1985, Vintage Acres sits on a 93.59-acre parcel and comprises 300 pads, two apartments, and 14 storage units. The community was more than 97 percent occupied at the time of sale, and its homes are described as almost exclusively tenant-owned. NorthMarq characterized the property as a four-star community.

Amenities at Vintage Acres include a playground, a community center, a basketball court, and an office.

At $25.5 million for 300 pads, the transaction implies a price of approximately $85,000 per pad.

Duluth Market Context and NorthMarq's Manufactured Housing Activity

Duluth is the county seat of St. Louis County and Minnesota's fourth-largest city. The city is home to the state's second-largest economy and is the largest American city on the shores of Lake Superior, according to NorthMarq's announcement.

The Vintage Acres transaction is the second significant manufactured housing deal NorthMarq has brokered in Duluth in recent months. In December, the firm's investment sales team arranged the sale of Zenith Terrace, a 500-lot manufactured housing community also located in the city.

About the Firms

NorthMarq is one of the largest privately held commercial real estate firms in the United States, with more than 50 offices across the country. The firm provides debt, equity, investment sales, loan servicing, and fund management services across a range of property types. NorthMarq manages a loan servicing portfolio of more than $80 billion and has completed $91.3 billion in transactions over the past four years, according to the company. Legacy Communities is based in Phoenix, Arizona. GHI Investments is based in Duluth, Minnesota.