Sun Communities to Buy 4 Mich. Parks
Sun Communities Inc. has agreed to pay $70.8 million for four manufactured housing communities in Eastern Michigan.
Sun Communities, a real estate investment trust (REIT) based in Southfield, Mich., that owns and operates manufactured housing and recreational vehicle communities, entered into the purchase agreement on Oct. 3 with Rudgate Silver Springs Company LLC, Rudgate West Company LP, Rudgate East Company Limited Partnership, Rudgate East Company II Partnership and Rudgate Hunters Crossing LLC, according to a news release.
The purchase includes the assumption of $15.7 million of debt with the balance paid in cash.
The four communities are comprised of 1,996 manufactured housing sites. The closing of this transaction is subject to customary closing conditions, including the consent of the existing lenders, and this transaction is expected to close in November.
The company will also be providing approximately $15.3 million of mezzanine financing subordinated to $45.9 million of third-party senior debt for two additional manufactured housing communities owned by Rudgate Village Co. LP, Rudgate Clinton Co. LP and Rudgate Clinton Estates LLC.
The company will also enter into management agreements under which it will manage these two communities. The two communities, which are also located in Eastern Michigan, are comprised of 1,598 manufactured housing sites.
"We are pleased to announce the execution of agreements to purchase four high-quality communities and to separately finance and manage two other high-quality communities located in one of our strongest growth markets," said Gary A. Shiffman, chairman and CEO. "These communities fit into our strategy by providing growth through occupancy gains and the ability to bring rents to market levels near term. We anticipate closing these transactions, subject to final approval of debt assumption from the lender, within the next 60 days."
Sun Communities Inc. currently owns and operates a portfolio of 164 communities comprising approximately 57,100 developed sites.