Sun Communities also acquired four manufactured housing communities comprising 1,542 developed sites with 89% occupancy. The aggregate price was $54.6 million at a 7.5% capitalization rate and included the assumption of approximately $16 million in debt. Three of the communities are in northeast Atlanta and the fourth is in Ypsilanti, MI. An additional $100 million of acquisitions are scheduled to close in mid-November, Sun Communities officials say.
Sun also says it completed its previously announced one-million-share buyback at an average price of $37.24. The company says it is considering a further buy-back plan and a decision may be made on that plan in December.
The company owns 20 communities in Florida comprising 9,680 sites. Four hurricanes have ravaged Florida, but there was minimal structural damage. Sun Communities says costs related to hurricane storm damage to the 20 communities it owns in Florida will range from $600,000 to $700,000 and will be reflected in third-quarter results.
Sun also holds a second mortgage loan on two communities formerly owned by Sun, which suffered severe damage from Hurricane Jeanne. "The owner has advised us that the communities have lost more than 50% of their homes and he is assessing alternatives and will inform us of his plan as soon as practically possible," Sun says. The loan is current as of Sept. 30 and currently totals approximately $1.5 million.
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