Posts Tagged ‘manufactured home communities’

Equity LifeStyle Properties Inc. on Thursday closed on seven acquisition properties along with certain manufactured homes and loans secured by manufactured homes located at the properties for a stated purchase price of approximately $99 million.

As of Thursday, ELS has closed on 75 acquisition properties since July 1 and is continuing to perform due diligence on the one remaining acquisition property, according to a news release.

The portfolio of 75 manufactured home communities and one RV resort contains 31,167 sites on approximately 6,500 acres located in 16 states (primarily located in Florida and the northeastern region of the United States) and certain manufactured homes and loans secured by manufactured homes located at the acquisition properties. The stated purchase price is $1.43 billion.

The purchase price in connection with this closing was funded with:

  • The assumption of approximately $55 million of mortgage debt secured by the acquisition properties.
  • Approximately $44 million of cash. The cash was obtained from the proceeds of the previously announced $200 million of financings originated during the quarter ended Sept. 30.

Equity LifeStyle Properties Inc. is a fully integrated owner and operator of lifestyle-oriented properties and as of Thursday owns or has an interest in 382 quality properties in 32 states and British Columbia consisting of 141,175 sites.

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.

Publicly held Equity LifeStyle Properties Inc. (ELS), a Chicago-based real estate investment trust (REIT) that operates Encore RV Resorts and Thousand Trails RV parks and membership resorts as well as ELS manufactured home communities, is a national powerhouse in the camping business.

Yet, ELS, which generated $475 million in revenue in 2009, retains a rather low profile for a company of its stature within the RV park and campground sector.

Joe McAdams, ELS’ outspoken and sometimes flamboyant president, is about to change all that by better promoting the overall brand of ELS, which predominately owns and operates resorts in Sunbelt states and near major East Coast metropolitan areas.

”One of the biggest problems I have is a brand name problem because people don’t know how good I (ELS) am,” McAdams told ”People have been coming back to Tropical Palms (Orlando, Fla.) resort for 30 years because they like the park. They don’t care who owns it – that it’s part of ELS. They are coming back to Tropical Palms.

”We are a national-scope company. We are going to promote ourselves on TV where you have to have brand identification – a national identity.”
Full Story…

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