Sun Buys Another MH REIT for $1.7B

A Sun Communities manufactured home unit. The REIT’s portfolio runs to 231 properties across 30 states.

SOUTHFIELD, MI—Sun Communities Inc. said Tuesday that it would acquire fellow manufactured housing REIT Carefree Communities Inc. from Centerbridge Capital Partners for $1.68 billion in cash and stock. The deal, one of two M&A transactions within the commercial real estate sector to be announced on Tuesday, will make Southfield, MI-based SUI the premier publicly traded REIT in the manufactured housing and RV community space, enlarging its portfolio by more than 40%. In connection with the acquisition, SUI said late Tuesday afternoon that it would issue four million shares of common stock to partly fund the Carefree deal.

SUI’s chairman and CEO, Gary Shiffman, says the the acquisition of Carefree Communities “further solidifies our position as a best-in-class manufactured housing and RV community owner and operator and enables us to drive shareholder value going forward. Similar to our 2014 acquisition of the American Land Lease portfolio, this accretive transaction enhances our geographic diversity, deepens our presence in key coastal markets and boosts our age-restricted sites to 33% of our portfolio.”