Tricon Capital Group Inc., a principal investor and asset manager focused on the residential real estate industry, announced that its Tricon Lifestyle Communities investment vertical has acquired a portfolio of three housing communities in California for a total purchase price of $30.4 million.
Two of the communities, located in Indio, are age-restricted properties totaling 336 rental units. Indio sits in the Coachella Valley, a popular residential market for retirees near Palm Springs. The third property, Springdale Estates, is located in San Marcos (San Diego County) and is a family community consisting of 85 residential units. TLC intends to execute a capital improvement program focused on the amenity centre and entrance features at all three communities.
The total purchase price of $30.4 million was satisfied with cash and a seven-year non-recourse financing package at an average 62 percent loan-to-value and 3.85 per cent fixed interest rate. This transaction expands TLC’s presence into California and increases its portfolio size to 3,065 residential pads across 14 communities, with approximately $129 million of assets under management.
About Tricon Lifestyle Communities
Tricon Lifestyle Communities focuses on acquiring, enhancing and managing manufactured housing communities across the United States through a joint venture with its third-party operating partner, Cobblestone Real Estate LLC, a vertically integrated asset and property manager. TLC’s strategy is to assemble a high-yielding, institutional-quality portfolio of largely age-restricted communities in a highly-fragmented market that is primarily dominated by private owners. TLC aims to generate stable cash flow by leasing pads to owners of prefabricated homes within its MHCs, and to enhance the value of these communities through capital improvement programs and upgraded resident services.