SOUTHFIELD, Mich. — Sun Communities has entered into an agreement with Morgan Resorts to acquire 11 RV communities and their associated assets, according to a statement filed with the Securities and Exchange Commission.
The 11 properties include:
- Morgan Fiesta Key
- Gwynns Island RV Resort
- Indian Creek RV Resort
- Lake Laurie RV Resort
- Newpoint RV Resort
- Peters Pond RV Resort
- Virginia Tent
- Wagon Wheel Maine
- Westward Ho RV Resort
- Wild Acres
The aggregate purchase price was $135 million, subject to certain adjustments, which will be paid by cash to pay off all existing secured debt and the balance will be paid in a combination of cash and up to $10 million of newly created Series A-3 Preferred OP units of a newly formed Sun Communities operating limited partnership prior to closing, the SEC filing noted.
A third-party has recorded a memorandum of agreement for an option to acquire the properties was also filed against some or all of the communities, and the filing notes such an encumbrance will need to be resolved prior to the closing.
Under certain circumstances prior to the closing, the partnership or its subsidiary may loan up to $74.5 million to refinance the existing secured debt on five of the communities and an additional recreation vehicle community. If that happens, Sun Communities operating limited partnership would become the senior secured lender on all of such communities.
“As with all of Sun’s acquisitions, we like to work closely with the residents to learn what improvements may be needed and how we can improve their experience as residents,” said Jonathan Colman, executive vice president of Sun Communities told Campground Daily Report. “Additionally, Sun’s policy is to immediately start work on community improvements and the repair of any deferred maintenance to bring the community up to the highest standard.”
SOURCE: Securities and Exchange Commission filing