Southfield-based Sun Communities will purchase 59 manufactured home parks — comprising more than 19,000 sites in 11 states — from Green Courte Partners, a Chicago-based private equity real estate investment firm, for approximately $1.3 billion.
“This transaction significantly increases the scale and diversity of our company,” says Gary A. Shiffman, Sun Communities’ chairman and CEO. “The (portfolio) represents a very unique opportunity given its high asset quality, leading position in high-barrier markets, and strong occupancy at attractive monthly rents per site.”
The acquisition will increase Sun Communities’ portfolio to 245 communities totaling nearly 90,000 sites in 29 states, with a combined enterprise value of approximately $5.1 billion.
Of the sites included in the purchase, more than 75 percent are age-restricted, with nearly 11,000 located in Florida. “(This acquisition) improves our overall diversification with limited integration risk due to the complementary nature of Sun Communities and (its) portfolios,” Shiffman says.
As part of the acquisition — expected to close in two stages later this year and early 2015 — investors of Green Courte Partners will own approximately 11 percent of Sun Communities. Randall K. Rowe and James R. Goldman, chairman/founder and vice chairman/CIO of Green Courte Partners, respectively, will join Sun’s board of directions.
“We believe the combination of our manufactured home business with Sun Communities will create an industry leading growth platform,” Rowe says.