Monroe Capital, on behalf of its investment funds, has established a partnership with Triad Financial Services (“Triad”) to originate and purchase commercial Community Rental loans made to manufactured home community owners. The initial pool is expected to be ~$300 million. Monroe has secured a revolving credit facility with Canadian Imperial Bank of Commerce to finance such origination and purchase. The capital provided by the Monroe partnership will allow Triad to continue to expand its partnerships in the Manufactured Housing community space.
Triad, a subsidiary of ECN Capital Corp., is a leading financial services provider in the manufactured housing industry in the U.S. and has been operating since 1959. Triad began offering the commercial Community Rental Product in 2019; the product is senior secured loans made to manufactured home community owners, such as REITs, family offices and other institutions. The community owners typically rent the units to various individuals throughout the US.
"We are thrilled to establish a partnership with Triad who is undoubtedly one of the largest and most distinguished firms in the manufactured home mortgage industry. The capital we are providing is not only expected to help institutions be able to provide families access to affordable housing at a time of limited housing availability, but it is also critically a compelling yield opportunity for our investors. This partnership represents the continued growth of our specialty finance business and demonstrates Monroe’s ability to invest in attractive asset-based opportunities and provide forward flow at scale,” said Kyle Asher, Co-Head, Alternative Credit Solutions, Monroe Capital.
“Triad continues to expand its product suite within the manufactured housing ecosystem through Community Rental Financing, which provides attractive financing solutions to community owners,” said Steve Hudson, CEO of ECN. “We are excited to expand our institutional partner base and welcome Monroe Capital alongside our other partners, Blackstone and Caryle who provide capital on our traditional mortgage product. Monroe was able to effectively structure a bespoke solution for us and they are a best of breed firm.”