Sun Communities Inc. has agreed to pay $70.8 million for four manufactured housing communities in Eastern Michigan, according to a news release.
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.
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.
Sun Communities 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.