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Sun Adds Four Communities to Portfolio

SOUTHFIELD, MI-Sun Communities, Inc. takes out a $90-million line of credit and purchases $55 million worth of manufactured home communities at a 7.5% capitalization rate near Atlanta and southeast Michigan.

By Dan Heaton | Updated on October 13, 2004

SOUTHFIELD, MI-Sun Communities, Inc. has announced a flurry of activity, closing on a new $90-million line of credit, $55 million worth of acquisitions, a stock buy-back and other activities. The locally based REIT, which owns and operates 136 manufactured housing communities mostly in the Midwest and Southeast, says the new three-year, $90-million unsecured line of credit will be at Libor plus 1.75%.

Sun Communities also acquired four manufactured housing communities comprising 1,542 developed sites with 89% occupancy. The aggregate price was $54.6 million at a 7.5% capitalization rate and included the assumption of approximately $16 million in debt. Three of the communities are in northeast Atlanta and the fourth is in Ypsilanti, MI. An additional $100 million of acquisitions are scheduled to close in mid-November, Sun Communities officials say.

Sun also says it completed its previously announced one-million-share buyback at an average price of $37.24. The company says it is considering a further buy-back plan and a decision may be made on that plan in December.

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