ELS Selling Mich. Sites; Adds Chicago Property
Equity LifeStyle Properties Inc. today (Aug. 2) announced the closing of two transactions.
According to a press release, the company completed the sale of 10 manufactured home communities in Michigan collectively containing approximately 4,925 sites. These assets, acquired as part of the $1.5 billion Hometown acquisition in 2011, were ultimately targeted for disposition because “they did not satisfy our core business strategy.” Overall occupancy has remained around 70% since the acquisition with approximately 37% of the occupancy consisting of rental homes and home loans owned.
ELS also expects to close the sale of one additional community, also located in Michigan, containing 419 sites during the third quarter of 2013. The closing of the sale of the remaining community in Michigan is subject to customary closing conditions and no assurances can be given that the disposition will be completed in accordance with the anticipated timing or at all. The sale price for all 11 communities is approximately $165 million and ELS expects to recognize a gain of approximately $41 million.
In addition, the company acquired three manufactured home communities located in the Chicago metropolitan area collectively containing approximately 1,207 sites for a purchase price of $102 million. ELS funded the purchase price with available cash and limited partnership interests in our operating partnership.
CEO Marguerite Nader noted, “We are pleased with the execution on these transactions. We were able to redeploy capital from our sale of assets in noncore markets into three high-quality manufactured home communities in the Chicagoland area to complement our existing assets in this market.”