YES! Communities (“YES!”), one of the nation’s largest owners and operators of manufactured home communities, has sold an approximately 71% equity interest in its combined businesses to two global institutional investors, including affiliates of GIC, the sovereign wealth fund of Singapore. In connection with the transaction, YES!’s three manufactured home community portfolios will be consolidated into a single entity, whose principal owner and sole general partner will be Yes Communities, LLC, a newly formed real estate investment trust.
YES! is a portfolio company of opportunistic real estate funds managed by Stockbridge Capital Group, LLC. Stockbridge’s existing investors, together with members of YES!’s management team, will continue to own an approximately 29% interest in the new, consolidated enterprise. Financial terms of the transaction were not disclosed.
Based in Denver, YES!’s manufactured home community businesses include 178 communities across 17 states, with more than 44,600 residential home sites, an inventory of over 11,500 manufactured homes and a portfolio of home loans secured by homes within its communities. Founded in 2007, YES! pioneered an innovative operating strategy, offering multiple affordable housing solutions designed to meet the varying needs of its residents. The YES! strategy incorporates manufactured home site rental, home rental, home sales and home loan acquisition programs within each of its communities.
Debt financing for the transaction included two secured mortgage loans, from Fannie Mae and Freddie Mac, respectively, together with a syndicated line of credit arranged by KeyBank. Eastdil Secured, L.L.C. served as Senior Financial Advisor to YES!, with KeyBank Capital Markets, BofA Merrill Lynch and Citi serving as Financial Advisors. JMP Securities LLC and Deutsche Bank Securities Inc. also provided financial advisory services in connection with the transaction.
Stockbridge Capital Group, LLC is an independent real estate investment management firm which, together with its affiliates, had approximately $10 billion in real estate and real estate-related assets under management as of June 30, 2016. In addition to real estate ownership, Stockbridge also specializes in large-scale development and redevelopment projects. Stockbridge is headquartered in San Francisco with offices in Chicago, New York and Atlanta.
Simpson Thacher represented Stockbridge Capital Group LLC in connection with this transaction. The team included Mike Nooney, Robert Guo and Dena Acevedo (M&A and Private Funds); Jen Levitt (Credit); Jason Vollbracht (Tax); Marcela Robledo (IP); and Jamin Koslowe (ECEB).