A manufactured home community in Manatee County near Palmetto has been sold to a Virginia-based real estate company for $69.9 million, property records show.
Country Lakes Village and Country Lakes Village II were rated as part of the transaction. The 55+ community consists of over 470 lots near the 6100 block of Bayshore Road.
Country Lakes Co-op Inc. sold the property in late July to CS1031 Country Lakes Village MHC, DST.
This holding company uses the same Virginia mailing address as Capital Square, a “national real estate company specializing in tax-advantaged real estate investments” based in Virginia.
Capital Square did not provide additional details about the transaction when contacted by a reporter.
CS1031 Country Lakes Village also took out a $31.8 million loan.
The company, according to its website, has several other manufactured home communities in Florida, including Harbor View in Port Charlotte, The Coach House in Palmetto, Foxwood Village in Lakeland, and Midway Estates in Vero Beach.
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“Since 2012, Capital Square has achieved more than $6 billion in transaction volume. Capital Square-related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/assets and disposal, for a growing number of high net worth investors, private equity firms, family offices and institutional investors,” according to an independent company press release from July.
Capital Square has also begun developing apartments across the Southeast with around 2,000 apartments in development with costs in excess of $600 million.
The name of the holding company indicates that the transaction involved a 1031 exchange – a transaction that allows investors to withdraw the proceeds of an investment sale and defer taxes by purchasing a similar asset.
Phil Ginexi, co-founder and managing director of The Multifamily Firm of Sarasota, said it’s been an exciting time for investors looking at Southwest Florida properties.
Interest rates have increased borrowing costs, but also made it harder for renters to afford a home. This increases the demand for apartments and other affordable housing options, such as manufactured home communities.
Combined with a strong labor market, rents have not decreased, despite some waning interest from buyers.
“In many cases, market fundamentals are better now than they were last year,” he said. “But many buyers are in a wait-and-see approach.”
He said manufactured home communities might be seen as attractive by some investors because they stabilize cash flow with predictable income.
“It’s probably a safe bet to get affordable housing options,” he said. “There are a huge number of people in Florida who need it.”
In 2019, a large commercial investor purchased 10 mobile home parks in Bradenton for $40.6 million.