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Manufactured Home Communities, Inc. (NYSE: MHC) has entered into an agreement to purchase the real estate holdings of Thousand Trails, Inc., the largest operator of membership-based campgrounds in the United States.
The $160 million transaction involves MHC’s purchase of about 3,000 acres of vacant land as well as 57 campground properties in 16 states – mostly in the west – that belong to Thousand Trails of Frisco, Texas.
Thousand Trails, which has 108,000 members, will continue to operate the 57 campgrounds through a 15-year leaseback arrangement, with two five-year renewal options, though it will no longer have access to the 3,000 acres of vacant land.
“We are particularly excited about the opportunity to enhance MHC’s real estate holdings on the West Coast of the United States as well as adding close to 3,000 acres for expansion,” MHC CEO Thomas Heneghan said in a statement issued Tuesday (Aug. 3), adding, “The lease structure allows MHC to increase its exposure to the RV sector while retaining its desired goal of investing in assets which generate stable and predictable cash flows.”
The transaction is the latest in a series of acquisitions for MHC in recent months.
In May, MHC announced the acquisition of eight manufactured-home and RV resort communities with 4,325 sites for about $185 million. The properties include the Village of Monte Vista, an 832-site manufactured-home, park model and RV resort in Mesa, Ariz., containing over 50 acres for additional expansion, as well as the ViewPoint RV and Golf Resort, also located in Mesa.
MHC has also acquired a 93% equity interest in National Home Communities, which owns the Encore and Sunburst chain of RV resorts in California, Texas and Florida.
MHC owns or has a controlling interest in 209 RV, park-model and manufactured-home properties with 80,028 sites in 23 states. MHC is a self-administered, self-managed, real estate investment trust (REIT) headquartered in Chicago.