Equity LifeStyle Properties Inc. (ELS) announced Thursday (Sept. 15) that it closed on $100 million of secured financing bearing interest at rate of 5 per annum.
This loan closing completes the new financings that the company expected to originate in connection with its previously announced major property acquisition, ELS stated in a news release.
The loan requires interest only payments for the first two years and matures on Nov. 1, 2021. The loan is secured by 10 manufactured home communities and one RV resort.
The company has previously announced that it entered into purchase and other agreements to acquire a portfolio of 75 manufactured home communities and one RV resort and certain manufactured homes and loans secured by manufactured homes located at the acquisition properties for a stated purchase price of $1.43 billion, excluding estimated closing costs of approximately $22 million.
As of Thursday, ELS has closed on 58 of the 76 acquisition properties, and the proceeds from the latest loan are expected to be used to partially fund the acquisition of the remaining 18 properties. The company’s closing of the remainder of the acquisition is subject to the receipt of loan servicer consents and other customary closing conditions. No assurances can be given that the remainder of the acquisition will be completed in its entirety in accordance with the anticipated timing or at all.