UMH Properties Inc. (NYSE: UMH) has expanded its partnership with Nuveen Real Estate, a TIAA company, by way of a new joint venture.
According to the companies, the joint venture focuses on the development of a new manufactured housing community located in Honey Brook, Pennsylvania, which is part of the Philadelphia metro area. The completed community will contain 113 manufactured home sites situated on approximately 61 acres.
UMH initially acquired the land in November 2022, which is being sold to the joint venture. Construction of the community is expected to commence in the next few weeks and should take approximately 15 months to complete.
UMH will have a 40% stake in the joint venture and will serve as the managing member, developer and operating member. The company will also earn development fees, management fees, assets under management fees and a promote for exceeding IRR targets, and it will have the right to purchase the community from the joint venture after a certain period of time.
“UMH is excited to further grow and strengthen our relationship with Nuveen Real Estate, who shares our vision of developing and acquiring high-quality residential communities to help combat the housing crisis,’ said Samuel A. Landy, president and CEO. “This joint venture gives us the financial capacity to develop and acquire communities while limiting the short-term impact on our FFO during construction and lease-up.”
Nikita Rao, portfolio manager of Nuveen’s U.S. Cities Multifamily Fund, added, “Nuveen is proud to work alongside UMH to develop high-quality housing in a major MSA. UMH’s long track record as an exceptional investor and operator, consistently executing successful business plans, aligns seamlessly with our investment strategy. The property marks the Fund’s first investment into manufactured housing and Nuveen’s third investment with UMH.”
