Sun Communities Completes $71M Acquisition
Sun Communities Inc., a real estate investment trust based in Southfield, Mich., that owns and operates manufactured housing and recreational vehicle communities, announced Monday (Nov. 19) that it has closed on its previously announced acquisition of four manufactured housing communities for a purchase price of $71.1 million.
According to a news release, the company also purchased related manufactured homes, promissory notes and installment sales contracts. These four communities are comprised of 1,996 manufactured housing sites. The company also has provided $15 million of mezzanine financing subordinated to $45.9 million of third-party senior debt for two additional manufactured housing communities, as previously announced. The company entered into management agreements under which it will manage and operate these two communities which are comprised of 1,598 manufactured housing sites.
"The acquisition marketplace continues to offer opportunities for accretive purchases of communities. These acquisitions provide additional sources of growth through rental increases and occupancy growth, which complement the strong performance of our core portfolio as it moves toward and above 90 percent occupancy," said Gary A. Shiffman, chairman and CEO. "We expect to stay active in the market as we continue to see attractive opportunities to enhance earnings growth," Shiffman added.
Sun Communities Inc. owns and operates a portfolio of 171 communities comprising approximately 61,300 developed sites.