Sun Communities Inc., a real estate investment trust that owns and operates 136 manufactured housing and recreational vehicle communities, announced on Wednesday (March 2) the completion of a $115 million collateralized mortgage backed security (CMBS) financing with JPMorgan Chase Bank, National Association.
The CMBS, which is for a term of 10 years, is secured by 11 properties and carries a fixed interest rate of 5.837% and principal payments based on a 30-year amortization period, according to a news release. The company said $104.8 million of the proceeds were used to repay interest and principal on existing debt. The remaining proceeds were used to pay closing costs and expenses, fund escrows and approximately $8.3 million will be used to pay down the company’s revolving line of credit.
“We are pleased to have successfully completed our plan to refinance this debt several months in advance of its maturity, while paying no pre-payment penalty, and to be a significant piece of a current CMBS transaction,” said Gary A. Shiffman, chairman and CEO. “The conclusion of this transaction allows us to further focus our attention on our remaining strategic initiatives for 2011.”