Equity Firm Joins Ariz.-based Carefree Family
Centerbridge Capital Partners II L.P. and its related entities have formed a new business called Carefree Communities Inc. for the ownership and operation of destination recreational vehicle resorts and senior manufactured housing communities, according to a news release released on Thursday (July 11).
Carefree is the result of Centerbridge’s June 2 acquisition of National RV Communities LLC (NRVC), an owner and operator of 61 destination RV resorts and senior MH communities from Almanac Realty Securities IV LP (Almanac), an investment fund managed by Almanac Realty Investors. NRVC is headquartered in Scottsdale, Ariz., and operates communities in seven states and Canada, with the majority located in Florida.
The company will operate under the Carefree RV Resorts and Carefree Communities brands. NRVC’s senior management team, David A. Napp and Colleen S. Edwards, the CEO and president of NRVC, respectively, have co-invested alongside Centerbridge and will lead and manage Carefree.
As of July 11, Carefree has completed the acquisition of three additional properties: Sun-N-Fun RV Resort in Sarasota, Fla., Sherkston Shores RV Resort in Port Colborne, Ontario, and Regency Heights in Clearwater, Fla; and acquired a leasehold interest in a fourth property, Tropical Palms RV Resort in Kissimmee, Fla. Including these acquisitions, the combined Carefree platform now has an aggregate asset value of approximately $650 million.
William D. Rahm, Centerbridge senior managing director, said, “We believe this investment represents a compelling opportunity to back a strong and highly experienced management team in an attractive sector. Carefree is well-positioned to acquire additional senior manufactured housing and recreational vehicle communities in what remains a very fragmented industry. We look forward to working with the Carefree team to build the leading franchise serving active adults in the destination RV and senior MH resort sectors.”
Napp said, “We are excited to partner with Centerbridge and feel the acquisition of the new communities positions us as a leader in our industry. We will continue to focus on providing our active guests a memorable experience through communities that offer vibrant resort style living, friendly and helpful associates, well maintained facilities, and efficient operations, as we acquire additional properties to extend Carefree’s role in our sectors.”
Centerbridge was advised by Simpson Thacher & Bartlett LLP. NRVC was advised by Clifford Chance. Almanac was advised by Proskauer Rose LLP. KeyBank Capital Markets, Inc. served as financial advisor to NRVC. GE Capital, JP Morgan Chase & Co., and KeyBank NA provided financing to Carefree.
About Carefree Communities Inc.
Carefree Communities Inc. is a private REIT which owns and operates destination RV parks and senior MH communities. As one of the fastest growing companies in the RV / MH sector, Carefree strives to create a “leisure resort lifestyle” with a strong sense of community for its residents delivered with a superior level of customer service. The company’s communities comprise over 16,000 sites on 65 properties across North America. While the majority of communities are located in Florida, Carefree also has properties in Arizona, California, Texas, North Carolina, New Jersey, Massachusetts, and Ontario, Canada.
Centerbridge Partners L.P. is a private investment firm headquartered in New York City and has approximately $20 billion in capital under management as of May 2013. The firm focuses on private equity and credit investments. The firm is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.
Almanac Realty Investors, formerly known as Rothschild Realty, is a leading provider of growth capital to public and private real estate companies, through its Almanac Realty Securities funds. Since 1996, when the first of such funds was organized, Almanac has committed over $2.7 billion to 33 investments. For further information about Almanac, visit the company website at www.almanacrealty.com.