- What 23:32 Capital and Osmington Capital Partners acquired the portfolio
- Why Based on advertised first-year NOI, the valuation works out to an 8.23% cap rate
- What next The portfolio has major expansion and site conversion potential
A portfolio of recreational resort communities in Ontario has traded at an 8.23% capitalization rate, Green Street News can reveal.
23:32 Capital and Osmington Capital Partners acquired the properties from Sun Communities for $91m. Colliers had the assignment. It was previously under contract at $105m, but a deal was not finalized.
The portfolio comprises 2,840 sites in 13 communities, including Huntsville, Lambton Shores, Napanee and Tiny. First-year net operating income was advertised at $7.5m.
The purchase was made through the 23:32 Capital RV Resort Fund LP, and the purchase price was satisfied through existing capital commitments and debt financing. Canaccord Genuity Corp. served as financial advisor to the fund.
“We are delighted to have the opportunity to own these properties,” Bryce Stewart, chief executive and founder of 23:32 Capital, told Green Street News.
“We think they are Class A properties in exactly the right markets that we would like to be in, and exactly the right markets that we think Canadians want to enjoy recreational experiences in. They’re highly amenitized, within driving distance of the GTA and surrounded by the Great Lakes.”
The portfolio has robust occupancy fundamentals with strong rental rate growth, and there is significant expansion and site conversion potential.
23:32 Capital is a merchant bank that owns, operates and develops manufactured housing and seasonal resort communities. It is headquartered in Toronto.
Osmington is a Toronto-based investment platform active in real estate, private equity and venture capital. It’s an affiliate of Osmington Inc., a private commercial real estate and investment company. Vlad Amurjuev is managing partner of Osmington Capital Partners, and Lawrence Zucker is chief executive of Osmington Inc.
Sun Communities is a fully integrated REIT. It has $25bn of enterprise value and, as of Q3, owned, operated or had an interest in over 650 properties. Gary Shiffman is chair and chief executive of the Southfield, Michigan-based company.
