Sun Communities Inc. announced today (Feb. 13) that on Feb. 8 it acquired 10 recreational vehicle communities located in the Eastern U.S. for $111.47 million.
According to a news release from the Southfield, Mich.-based owner of RV parks and manufactured housing communities, the newly purchased properties and associated intangibles are from Gwynns Island RV Resort LLC; Indian Creek RV Resort LLC; Lake Laurie RV Resort LLC; Newpoint RV Resort LLC; Peters Pond RV Resort Inc; Seaport LLC; Virginia Tent LLC; Wagon Wheel Maine LLC; Westward Ho RV Resort LLC; and Wild Acres LLC.
In connection with this transaction, the company also purchased certain cottages and homes located in the communities for an additional $1.32 million.
Th acquired communities, located in Maine, Virginia, Connecticut, Massachusetts, New Jersey, Ohio and Wisconsin, are comprised of nearly 3,700 sites of which approximately 40% are filled with recreational vehicles under annual rental contracts.
“While currently under-managed and in need of immediate capital improvements, these ‘Class A’ locations afford us a unique opportunity to enhance long-term growth through application of our existing management expertise, superior reservation systems and marketing programs and provide us entry into a new geographic footprint,” said Gary A. Shiffman, chairman and CEO. “The acquired portfolio provides economies of scale and cross marketing opportunities from North to South when combined with our current recreational vehicle holdings, and tempers seasonality of our revenues as the majority of these communities have seasons that run from May – September rather than the traditional October – April.”
The company also announced that on Feb. 6, it borrowed $61.5 million from Bank of Montreal, as lender and administrative agent, secured by first priority liens on all of the company’s equity interests in certain of its subsidiaries that directly or indirectly own 20 manufactured home or recreational vehicle communities.
Sun Communities Inc. is a Real Estate Investment Trust (REIT) that currently owns and operates a portfolio of 183 communities comprising approximately 67,381 developed sites.
Sun Communities Inc., a real estate investment trust that owns and operates manufactured housing and recreational vehicle communities, today (July 26) reported its second quarter results.
According to a Reuters account, highlights for the three months ending June 30, 2012, included:
• Funds From Operations (FFO) excluding transaction costs incurred in connection with acquisition activity was 78 cents per share compared to 74 cents per share in the second quarter of 2011, an increase of 4 cents per share, or 5.4%.
• Same site net operating income increased by 5.9%.
• Home sales increased by 26.2% as compared to 2011.
• Revenue producing sites increased by 410 sites during the quarter bringing total portfolio occupancy to 86.8% as compared to 85% at June 30, 2011.
“Our business is strong and growing stronger. We are positioned well to increase both revenues and occupancy in the core portfolio and recent acquisitions. In 2013 we expect to reach an overall portfolio occupancy of 90%,” said Gary A. Shiffman, chairman and CEO. “Our commitment is to acquire properties to which we can continue to deploy management’s strengths and systems to generate additional long-term growth and value.”