Affordable Residential Communities ( ARC) set a weeklong exclusivity pact with Farallon Capital over a possible sale of the company's manufactured home assets.

The Englewood, Colo., company said it would gross $1.84 billion if a deal takes place, and would net around $535 million, or $9.20 a share. Affordable Residential said it would retain some preferred stock, exchangeable notes, trust preferred securities and its stake in the Nlasco insurance unit. The company said it would use its net operating loss carryforwards in a deal and seek to "make opportunistic acquisitions" with proceeds.

Farallon has been active recently in mortgage and property markets, having lent $200 million to Accredited Home Lenders ( LEND) and bought mall operator Mills in a venture with Simon Property ( SPG).