ELS Secures $100M Financing for Acquisitions
Equity LifeStyle Properties Inc. announced Tuesday (Aug. 9) that it closed on $100 million of secured financing to help fund a major property acquisition, according to a news release.
The Chicago-based company previously announced that it entered into purchase and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort and certain manufactured homes and loans secured by manufactured homes located at the acquisition properties for a stated purchase price of $1.43 billion, excluding estimated closing costs of approximately $22 million. Approximately $17 million of the estimated closing costs are expected to be incurred during the quarter ended Sept. 30.
As of Monday (Aug. 8), the company has closed on 51 of the 76 properties, and the proceeds from the $100 million loan are expected to be used in closing on the remaining 25 properties. In addition to the $100 million of gross proceeds obtained from Tuesday’s closing, the company also expects to obtain an additional $125 million of secured financing in the next 60 days to fund a portion of the acquisition, for a total of $225 million of new secured financing.
The company’s closing of the remainder of the acquisition is subject to the receipt of loan servicer consents and other customary closing conditions.
The loan requires interest only payments for the first two years and matures on Sept. 6, 2021. ELS previously locked its interest rate on the loan at 5.03%. The loan is secured by 10 manufactured home communities and two RV resorts.
ELS is a fully integrated owner and operator of lifestyle-oriented properties and as of Tuesday owns or has an interest in 358 properties in 32 states and British Columbia consisting of 130,891 sites.