The nonrecourse, fixed-rate loan carries a seven-year term and is part of Wells Fargo’s initiative to broaden its lending in the manufactured home space, according to Lew Grace, who oversees the bank’s balance-sheet lending in that sector.
“This transaction with the Carlyle Group showcases the ongoing support of our customers in this growing segment of the market,” he said through a spokeswoman. “The Carlyle Group has wide knowledge of this space and is a long-term customer of both Wells Fargo and the manufactured home community team who joined the firm last year from GE Capital Real Estate, myself included, and we look forward to strengthening our partnership.”
Grace joined Wells Fargo’s commercial real estate team along with his colleague Matt Krasinski in June of last year after the bank acquired a $9 billion portfolio of GE Capital Real Estate loans, many of which were backed by manufactured home communities.
The Carlyle Group’s portfolio—which is more than 90 percent occupied and contains 4,400 homes—spans across Delaware, Maryland, North Carolina, New Jersey, Pennsylvania, Washington, West Virginia and Virginia. The housing communities include Winterset Farms, which houses 352 homes in Wilmington, Del., and Forest Lake, which has 225 homes in Stephens City, Va.
“The Wells Fargo team assisted us in designing a creative loan facility that meets both our current as well as addressing our future needs,” said Singer. “We were able to lock in a great rate, and we look forward to growing our relationship with Wells.”