UMH Properties, Inc. (NYSE: UMH), a publicly traded real estate investment trust, has purchased a manufactured housing community located in an Orangeburg, South Carolina opportunity zone for $5.2 million. The property was purchased through UMH’s newly formed qualified opportunity zone fund.
The community sits on approximately 39 acres and is comprised of 186 developed homesites, of which approximately 42 percent are occupied.
“The community has been acquired through the [qualified opportunity zone fund], in which UMH invested a portion of the capital gains realized earlier this year from the sale of Monmouth Real Estate Investment Corp,” said Samuel Landy, president and chief executive officer. “UMH will also earn fees for sourcing acquisitions and managing the [fund].”
Landy explained that the opportunity zone fund seeks to purchase existing communities that require “substantial capital investment,” as well as development opportunities. The fund was designed to allow for deferral of tax on recently realized capital gains until December 31, 2026 and to potentially obtain certain other tax benefits.
“By providing quality affordable housing in opportunity zones, we will help make these areas even more attractive to employers who need housing for their employees. We look forward to further growth of the [opportunity zone fund] through acquisitions and development opportunities,” Landy added
UMH Properties, Inc., which was organized in 1968, owns and operates 132 manufactured home communities with approximately 25,000 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, and South Carolina. UMH also has an ownership interest in and operates one community in Florida, containing 219 sites, through its joint venture with Nuveen Real Estate.