Brookfield Asset Management managed to recapitalize a second major set of prefabricated housing communities just over a month after securing $ 2.2 billion in debt to fund a separate collection of mobile home parks and RV sites, according to the rating agency’s analysis of the agreement.

Morgan stanley, Bank of America and Barclays this time they came together to create $ 352 million commercial mortgage-backed securities (CMBS) Loan secured by Brookfield’s fee simple interest in 39 mobile home communities, with 7,417 blocks, across eight states, according to data from Fitch reviews.

Brookfield has acquired 27 of the 39 mobile home parks – comprising almost 4,100 blocks – under this CMBS single-borrower financing (MHC Trust 2021-MHC2) last month as part of a deal with India-based Elkhart Heritage Financial Group, while the remaining 12 communities, comprising over 3,300 blocks, are part of the larger portfolio of 135 properties the company has acquired from NorthStar Realty Finance Corp. and RHP Properties in March 2017. RHP partnered with Brookfield following this 2017 transaction to retain a 5% interest in the 135 parks and manage the day-to-day operations of the properties.

Brookfield and RHP have refinanced 124 of the 135 parks of the NorthStar agreement under $ 2.2 billion CMBS funding early last month. Morgan Stanley was also involved in this transaction, generating a quarter of the total loan amount, or approximately $ 551.3 million.

Approximately $ 116.6 million of this new CMBS loan recapitalizes NorthStar’s remaining dozen of assets and has helped finance Brookfields’ $ 144.6 million acquisition of Heritage 27 properties. The two-year interest-only, variable-rate loan, which includes three one-year extension options, also covered $ 7.6 million in prepayment penalties and $ 7.7 million in loan fees. fencing. Brookfield and RHP also captured approximately $ 75.5 million of equity in the transaction, per Fitch.

The portfolio of 39 properties in this transaction was valued at just over $ 452 million, which together with the loan amount indicates a loan-to-value ratio of around 78%.

Nearly 68 percent of the portfolio’s net operating income in place is carried by the 10 largest properties in the collection, which also represent more than 46 percent of its 7,417 mobile home blocks. Port side on the beaches in Jacksonville Beach, Fla., is the largest property in the portfolio, accounting for 12.6% of all blocks, per Fitch.

Most of the properties are in Indiana (17) and Illinois (7), but the three Florida properties in the portfolio are the largest, on average, and the most valuable.

During the pandemic, the collections at NorthStar properties were strong; the dozen communities have an average of 94% to 98% collections between April 2020 and March 2021. And before Brookfield’s acquisition of the 27 heritage properties, they had strong average collections in January 2021 (92.7%), which increased each month until they were sold – in February (93.9 percent) and March (95.4 percent). Last month, the average home ownership rate among residents across the portfolio was 91.4%, and residents across 39 properties have resided in their homes for 15 years, on average, which is higher the 14-year industry average, by Fitch. .