Florida Pension Fund Buys Manufactured Housing Portfolio for $187MM, Includes $9MM Property in Oroville

Oroville, Florida State Board of Administration, Cobblestone, Lake Vista, Stockbridge, San Francisco, MetLife

By Jon Peterson

Opportunities for housing across national markets continue to spur interest from institutional investors and state pension funds. In one such example, Florida State Board of Administration has paid $187 million for a national portfolio of manufactured housing in an effort to expand its footprint in the housing sector across the country. The only California asset in the portfolio was a property located in Oroville, which was acquired for $9.05 million, according to information provided by the pension fund.

The seller of the portfolio was Cobblestone, a company based in Oakwood Terrace, Ill. This firm is known as an owner of manufactured housing with most of its portfolio located in the Sun Belt region of the country.

The asset in Oroville goes by the name of Lake Vista. It is located at 6368 Lincoln Blvd., and the property has a total of 101 homes. The complex was roughly 98 percent occupied at the start of 2021.

Florida SBA provided $122 million of equity for the transaction, as stated by the pension fund in a board meeting document. This deal was the first time that the pension fund had acquired manufacturing homes on a direct basis and not through its typical investment vehicles, such as commingled funds.

The acquired portfolio involved 11 assets with a total of 1,641 homes. The assets were located across six communities in Florida, two each in Las Vegas and Arizona and the one property in Oroville. The occupancy on these properties varied from 70.8 percent to full occupancy. The separate account manager on the transaction was MetLife. The life insurance company did not respond to an email seeking comment for this story.

Florida SBA has has a diverse real estate portfolio, and it works across the spectrum of advisory firms. The pension fund closed on a recent transaction with San Francisco-based Stockbridge in a transaction where it made a $68 million equity investment into the Central Port Logistics asset in Savannah, Ga. The property is a newly-developed industrial project that will feature a total of 2.3 million square feet when completed.

Florida SBA has a significant allocation of real estate investments on the West Coast. As of the end of June, the pension fund had invested 40.3 percent of its real estate portfolio on the West Coast, according to a pension fund board meeting document, and it may look to expand that future in the future. The investor uses the ODCE Index as its benchmark for allocation of funds, which has 42.7 percent in West Coast properties.

On the residential side, the pension fund is also slightly under-allocated with its apartment portfolio. It has invested 24.5 percent in this property type, compared to 26.8 percent for the industry benchmark.

West Coast Commercial Real Estate News