Sun Communities Buys Three More RV Parks
Sun Communities Inc. today (Feb. 20) announced that on Feb. 16 it acquired three Florida RV communities, personal property and other associated intangibles from Three Lakes RV Park LLC, Blue Berry Hill RV LLC, Blue Berry Hill RV SPE LLC and Grand Lake RV and Golf Resort LLC for $25 million in cash.
The purchase included substantially all of the assets of two management companies affiliated with the sellers. Sun entered into customary non-competition agreements with the principals, according to a news release.
The acquired communities, located in Hudson, Bushnell and Orange Lake, are comprised of 488 permanent RV sites and 636 seasonal RV sites.
In December, the company purchased three RV communities, personal property and other associated intangibles from affiliates of the sellers. The aggregate purchase price for the six communities was $50 million and was financed with $17 million of newly acquired debt and $33 million of cash.
The debt is secured by the three RV communities acquired in December, bears interest at a rate of LIBOR plus 250 basis points, has a term of three years (plus two one-year extension options) and is interest-only until June 30, 2012, at which time amortization begins based on a 25-year amortization schedule.
The six communities contain a total of 997 permanent RV sites and 897 seasonal recreational vehicle sites. The company believes this portfolio provides for growth from both rental increases and improved seasonal occupancy and allows for cross-marketing opportunities utilizing the Company's existing call center systems and staffing.
Based in Southfield, Mich., Sun Communities Inc. is a REIT that currently owns and operates a portfolio of 162 communities comprising approximately 55,900 developed sites.