EASTON — A Michigan-based real estate investment trust will buy 31 manufactured home communities owned and operated by Jensen’s Inc., including Hyde Park and Southside Landing on the Mid-Shore.
Sun Communities Inc. will pay $343.6 million in stock and cash for Jensen’s portfolio, with Jensen’s becoming a subsidiary of Sun Communities.
“This acquisition is a great opportunity to further grow our manufactured housing portfolio with high-quality communities that match our investment criteria,” said Gary A. Shiffman, Sun Communities chairman and CEO. “We are very excited to add the owners of Jensen’s as shareholders due to their belief in our ability to create ongoing value.”
Kris Jensen, president of Jensen’s said, “After engaging in a thorough sale process for our portfolio, we are excited to be joining the Sun platform and to become Sun shareholders. We are impressed with Sun’s stellar reputation, successful track record of integration and ability to operate their communities to the highest of standards.”
Jensen’s, based in Southington, Conn., owns and operates more than 30 communities in eight Atlantic states, from New Hampshire to Georgia, with more than a third in Connecticut.
Jensen’s operates two communities on the Eastern Shore: Hyde Park, an age-restricted community on Cordova Road north of Easton, and Southside Landing, an all-ages community just outside Cambridge.
Residents buy and own their homes, but pay land rent and other fees to Jensen’s Inc.
The 31 manufactured housing communities have 5,230 developed sites and more than 460 additional expansion sites available for development, according to a press release. The 77% age restricted portfolio is about 92.5% occupied as of June 30.
Sun Communities owns and operates or has an interest in 382 manufactured housing and recreational vehicle communities with more than 133,000 developed sites as of June 30.
The total purchase price is $343.6 million, which includes an allocation of about $8 million for expansion land and adjacent parcels ready for development, according to a Sun Communities press release. The purchase price will be adjusted at closing for certain adjustments, including a reduction of about $60 million for debt that will be owed by Jensen’s as of the closing. At the closing, Sun will issue to Jensen’s shareholders $274.8 million in shares of its common stock at an issuance price of $139.3072 per share and pay the balance of the adjusted purchase price in cash. The transaction is subject to customary closing conditions and is expected to close by year-end 2019.
For additional information, go to www.suncommunities.com.