Sun Communities Acquires Safe Harbor Marinas in $2.1B Deal
The purchase is meant to provide customer and geographic diversity for the REIT.
Seeking diversity from the manufactured housing sector, Sun Communities—a REIT in the space—has agreed to buy Safe Harbor Marinas for approximately $2.11 billion.
Considered the largest and most diversified marina owner and operator in the country, Safe Harbor owns and operates 101 marinas, manages five marinas on behalf of third parties and has a member network of about 40,000 boat owners across 22 states.
The deal, which is expected to be accretive to 2021 Core FFO per share, will comprise approximately 15% of the company’s pro forma total annual rental revenue.
Sun Communities is purchasing Safe Harbor for its geographic and customer diversity, according to CEO Gary A. Shiffman.
Both Moelis & Co. and Citizens Capital Markets served as advisors to Safe Harbor Marinas. Citigroup Global Markets advised Sun Communities, Jaffe Raitt Heuer & Weiss P.C. served as legal counsel to the REIT while Sidley Austin and Duane Morris served as legal counsel to Safe Harbor Marinas.
Sun Communities’ main business line, manufactured housing, continues to outperform other commercial real estate sectors.
“Institutional investment activity in the manufactured housing sector is expected to increase” as it’s “recessionary resilient performance outshines the majority of commercial real estate sectors,” according to a research note by JLL. Further, JLL said, “unlike most other commercial real estate sectors, valuations for manufactured housing communities continue to trend upward.”