CHICAGO — Equity LifeStyle Properties, Inc. this week announced that it closed on $100 million of secured financing. The loan requires interest only payments for the first two years and matures on September 6, 2021. They previously locked their interest rate on the loan at 5.03 percent per annum. The loan is secured by 10 manufactured home communities and two RV resorts.
The company has previously announced that it entered into purchase and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort (the “Acquisition Properties”) and certain manufactured homes and loans secured by manufactured homes located at the Acquisition Properties for a stated purchase price of $1.43 billion (the “Acquisition”), excluding estimated closing costs of approximately $22 million. Approximately $17 million of the estimated closing costs are expected to be incurred during the quarter ended Sept. 30, 2011.
As of August 8, 2011, the company has closed on 51 of the 76 Acquisition Properties, and the proceeds from yesterday’s loan are expected to be used in closing on the remaining 25 Acquisition Properties. In addition to the $100 million of gross proceeds obtained from yesterdays’ closing, the Company also expects to obtain an additional $125 million of secured financing in the next 60 days to fund a portion of the Acquisition, for a total of $225 million of new secured financing.
The Company’s closing of the remainder of the Acquisition is subject to the receipt of loan servicer consents and other customary closing conditions. No assurances can be given that the additional secured financing or the remainder of the Acquisition will be completed in their entirety in accordance with the anticipated timing or at all.
Equity LifeStyle Properties, Inc. is a fully integrated owner and operator of lifestyle-oriented properties and as of August 9, 2011, owns or has an interest in 358 quality properties in 32 states and British Columbia consisting of 130,891 sites. The Company leases individual developed areas, or sites, with access to utilities for placement of factory-built homes, cottages, cabins or recreational vehicles. Customers may lease individual sites or enter right-to-use contracts providing the customer access to specific properties for limited stays. The Company is a self-administered, self-managed, real estate investment trust (REIT) with headquarters in Chicago. Visit www.equitylifestyle.com for more information.
SOURCE: Equity LifeStyle Properties, Inc. press release