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Manufactured Home Communities Inc. (MHC) recently announced the acquisition of eight manufactured home and RV resort communities containing 4,325 sites for an aggregate purchase price of around $185 million., according to a Securities & Exchange Commission (SEC) document filed by the Chicago-based real estate investment trust (REIT).
Three of the properties are located in Arizona, three of the properties are located in California, and two of the properties are located in Florida. Among the acquisitions are the Village of Monte Vista, a 832-site manufactured home, park model and RV resort in Mesa, Ariz., containing over 50 acres available for expansion and ViewPoint RV and Golf Resort also located in Mesa.
ViewPoint contains over 1,900 sites with an extensive amenity package, including two golf courses and vacant land to be developed into more than 500 sites.
“Monte Vista and ViewPoint establish a dominant presence in our core market of Arizona,” said Thomas Heneghan, MHC’s president and CEO said. “These two award-winning communities are great examples of the lifestyle enjoyed by our customers. Since December 2003 we have added 69 properties containing 28,922 sites and an additional 2,300 potential expansion sites.”
The eight acquisitions were funded by first mortgage debt proceeds of approximately $110 million with an average annual coupon rate of 5.48% and an average life of 10 years. MHC continues to finance its acquisitions with individual first mortgage financings. The Company issued approximately 1.1 million Operating Partnership Units in connection with the acquisition of Monte Vista.
MHC also announced it has closed a $50 million revolving credit facility with Wells Fargo Bank, on the same terms as its current $110 million credit facility. This credit facility increases the MHC’s unsecured borrowing capacity to $160 million. After these transactions, the company has $94 million of availability under its lines of credit.