Flagship Communities Real Estate Investment Trust has confirmed the purchase of a 96-lot manufactured housing community in Cleves, Ohio. The asset was acquired from Empower Park, LLC for approximately $6.0 million, representing a 5 per cent discount to its appraised value. This transaction increases the trust’s presence in the Ohio region and follows the recent acquisition of three other communities in the Greater Cincinnati area. The site also includes undeveloped land that could accommodate a further 12 lots in the future.

The community is situated in southwestern Ohio near the Indiana border, providing residents with access to Interstate 275 and Interstate 74. It is currently 96 per cent occupied, which the REIT identifies as an opportunity for further occupancy growth. Empower Park, LLC has carried out extensive renovations since 2022, including new street paving, solar lighting and the installation of a basketball court and ball field. The property also features a clubhouse and a playground for residents.

Kurt Keeney, President and Chief Executive Officer, stated: “This Acquisition reflects the disciplined growth strategy that has defined Flagship for more than 30 years – buying established communities with occupancy and growth potential. Given the recent improvements via renovations and the addition of new amenities, this MHC provides an attractive and affordable home-ownership option for working families in the Ohio market.”

To fund the deal, the REIT used a combination of cash and the issuance of Class B units by its subsidiary, Flagship Operating, LLC. These units were priced at $19.54, based on the 10-day volume-weighted average price. The acquisition was executed under a right of first offer agreement established in 2020.

Nathan Smith, Chief Investment Officer, noted the benefits of increasing the firm’s density in the local market. He said: “We are very fortunate to acquire a third high-quality MHC in Cleves, Ohio, having acquired another new Cleves MHC at the end of last year. In addition to strengthening our presence in the Cincinnati, Ohio market, we expect this Acquisition will continue to allow us the opportunity to improve operating efficiencies and generate economies of scale.”