NEW YORK, July 07, 2022 (GLOBE NEWSWIRE) — Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, today announced that it has originated a $114 million loan to Parakeet Communities (“Parakeet”), an experienced investor, owner, and operator of mobile homes and RV parks, for a portfolio of twelve mobile home communities (“MHCs”) located in Florida and North Carolina (the “Initial Portfolio”). An initial loan of $50.9 million will be used to pay closing costs, repay corporate debt, and create light capital improvements across the Initial Portfolio. The loan will be upsized up to $114 million as needed to future fund additional acquisitions as Parakeet identifies attractive investments that fit the same profile as the Initial Portfolio.
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, said, “The institutional approach, and operational efficiencies of scale that Parakeet brings to a typically disaggregated rental market will provide under-managed parks with much-needed capital improvements to maximize their growth potential and improve quality of living for residents. As demand for low-cost rental housing continues to grow across the Southeast, Madison Realty Capital is pleased to provide a flexible financing solution to an experienced group with an eight-year track record investing in MHCs for the continued expansion of their well-leased portfolio of mobile home communities throughout the region.”
Jonathan Wyss, Co-founder and CIO of Parakeet, said, “We are incredibly excited to be partnering with Madison Realty Capital on this financing solution to support the accelerated growth of our asset base throughout the Southeastern US. Their team and platform were great to work with throughout the whole transaction process and we look forward to expanding our relationship with them into the future.”
Consisting of approximately 1,100 total pad sites situated primarily along the east coast of Florida, the Initial Portfolio includes a small percentage of park-owned homes and is currently 88% occupied. The day-to-day operations of the mobile home parks are managed by an affiliate of Parakeet, whose management team focuses on capturing positive mark-to-market in rents through targeted, low-cost capital initiatives including road paving, landscaping, and utility installation.
About Madison Realty Capital
Madison Realty Capital is a vertically integrated real estate private equity firm that, as of March 31, 2022, manages approximately $8.5 billion in total assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed approximately $20 billion in transactions providing borrowers with flexible and highly customized financing solutions, strong underwriting capabilities, and certainty of execution. Headquartered in New York City, with an office in Los Angeles, the firm has approximately 70 employees across all real estate investment, development, and property management disciplines. Madison Realty Capital has been frequently named to the Commercial Observer’s prestigious “Power 100” list of New York City real estate players and is consistently cited as a top construction lender, among other industry recognitions. To learn more, follow us on LinkedIn and visit www.madisonrealtycapital.com.
About Parakeet Communities
Parakeet Communities is an owner and operator of manufactured home, RV and marina properties nationwide. Headquartered in the Washington D.C. area, with an office in South Florida, the company has approximately 40 employees across its acquisitions, asset management, corporate and property management teams. To learn more, please visit www.parakeetcommunities.com.
Media inquiries, contact:
Nathaniel Garnick/Grace Cartwright
Gasthalter & Co.
(212) 257-4170
madisonrealty@gasthalter.com
