Sun Communities Inc., a Southfield, Mich.-based real estate investment trust (“REIT”) that owns and operates manufactured housing and recreational vehicle communities, announced that on June 23 it acquired 17 manufactured home communities and one recreational vehicle community.
According to a press release, the communities were acquire from certain entities controlled by Kentland Corp. for approximately $142.3 million. The company acquired the communities, personal property and other intangibles associated with the communities from Kentland.
The acquisition includes 191 manufactured homes and $3.5 million of chattel notes collateralized by manufactured homes. The 18 communities acquired are located in western Michigan and comprise 5,042 manufactured home sites and 281 recreational vehicle sites.
In connection with these transactions, Sun Communities assumed $52.6 million of existing debt, paid off $24.8 million of existing debt, issued $45.5 million of preferred OP units and paid $19.4 million in cash. The pay-off of existing debt was financed largely by $22.9 million of new debt on five of the Kentland communities and one other existing community, which bears a weighted average interest rate of 3.02% and has a weighted average maturity of 3.1 years.
Sun Communities, Inc. is a REIT that currently owns and operates a portfolio of 155 communities comprising approximately 53,500 developed sites.