Posts Tagged ‘Equity LifeStyle Properties’

Equity LifeStyle Properties Inc. agreed to purchase 76 manufactured-home communities mostly in Florida and the northeastern U.S. for $1.43 billion.

The properties encompass 31,167 home sites on about 6,500 acres (2,600 hectares) in 16 states, the Chicago-based company said in a statement today. Equity LifeStyle is buying them from affiliates of closely held Hometown America LLC.

The acquisition will be funded through a stock offering, the assumption of about $524.3 million of mortgage debt, the issuance of equity to the seller and about $500 million of debt that Equity LifeStyle plans to obtain after the share sale is completed, the company said.

The purchase will increase the size of Equity Lifestyle’s portfolio to 383 communities — 211 manufactured-home communities and 172 recreation-vehicle sites — in 32 states.

Goldman Sachs Group Inc. was the company’s financial adviser on the acquisition.

Equity LifeStyle Properties Inc. (ELS) announced that it has entered into an Amended and Restated Credit Agreement.

The $380 million unsecured revolving facility increases borrowing capacity from $100 million under the current line of credit.

The $100 million line of credit was set to mature on June 29. The $380M LOC accrues interest at LIBOR plus 1.65% to 2.50% per annum and contains a 0.30% to 0.40% facility fee. The spread over LIBOR and the facility fee pricing are variable based on leverage throughout the loan term. The $380M LOC matures on Sept. 18, 2015, and has an eight-month extension option.

ELS owns or has an interest in 307 properties in 27 states and British Columbia consisting of 111,007 sites which includes Thousand Trails Campgrounds and Encore Resorts. The company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago.

A few months ago, many residents of Casa Del Sol West, a manufactured-home senior community near 91st and Peoria avenues, were angry with owner Equity LifeStyle Properties. They didn’t want the owner to allow recreational vehicles without a permit on the 1970s property.

Earlier this month, after about four months of talks, most residents were OK with sharing space with more than two dozen RVs and travel trailers. But they had two conditions: The age-restrictions would remain, and no area could be converted to an RV park.

Under the zoning standards when the community was built, RVs and travel trailers are allowed for up to 15 percent of the total spaces allocated. In Casa Del Sol West, the owner requested use in 12 percent of the lots, which would be 29 spaces.

As part of the conditional permit, Peoria has stipulated that a minimum lease of 30 days be entered into, to mitigate the generally transient nature of RV owners and provide some stability to the community, Robert Gubser, a senior planner, , told the planning commission.
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