Sun Communities Acquires 18 More Parks
Sun Communities Inc. announced Wednesday (June 29) that on June 23 it acquired 17 manufactured home communities and one recreational vehicle community from certain entities controlled by Kentland Corp., Wilbur A. Lettinga, William B. Lettinga and Michael Lettinga for approximately $142.3 million.
The company acquired the communities, personal property and other intangibles associated with the communities, according to a news release. In connection with these transactions, the company assumed $52.6 million of existing debt, paid off $24.8 million of existing debt, issued $45.5 million of preferred OP units and paid $19.4 million in cash.
The payoff of existing debt was financed largely by $22.9 million of new debt on five of the Kentland communities and one other existing community which bears a weighted average interest rate of 3.02% and has a weighted average maturity of 3.1 years.
The $52.6 million of assumed debt carries a weighted average interest rate and weighted average maturity of 5.66% and 4.8 years, respectively.
The acquisition includes 191 manufactured homes and $3.5 million of chattel notes collateralized by manufactured homes. The 18 communities acquired are located in western Michigan and comprise 5,042 manufactured home sites and 281 recreational vehicle sites.