Sun Communities, Inc.
), a real estate investment trust (REIT), has recently closed the
acquisition of four manufactured housing communities comprised of
1,996 manufactured housing sites for $71.1 million. The
properties were purchased from an unnamed seller.
EQUITY LIFESTYL (ELS): Free Stock Analysis
SUN CMNTYS INC (SUI): Free Stock Analysis
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Additionally, Sun Communities offered $15.0 million of mezzanine
financing subordinated to $45.9 million of third-party senior
debt to acquire two other properties. These would include
manufactured housing communities comprising 1,598 manufacturing
sites. The company will be handling the managerial operations of
these two communities.
The strategic move by the company is aimed to enhance the quality
of its overall portfolio. Sun Communities has occupancy of above
90% in most of its markets and with the above transaction it
further expects rental and occupancy growth going forward. These
acquisitions are also expected to be accretive to the company. By
the end of 2013, the company plans to construct over 1,500
expansion sites, primarily in Texas and Colorado.
Earlier in the third quarter of 2012, Sun Communities acquired a
recreational vehicle (RV) community of 260 sites titled Blazing
Star in San Antonio, Texas, for $7.1 million. This transaction
was funded through $4.1 million of assumed debt and $3.0 million
Headquartered in Southfield, Michigan, Sun Communities owns,
operates, and develops manufactured housing communities in the
midwestern, southern, and southeastern United States. Presently
the company operates a portfolio of 171 communities totaling
approximately 61,300 developed sites.
Sun Communities currently retains a Zacks #4 Rank, which
translates into a short-term Sell rating. We have a long-term
Neutral recommendation on the stock. One of its competitors,
Equity lifestyle Properties, Inc
) holds a Zacks # 2 Rank, which translates into a short term Buy