Toronto-based Tricon Capital Group, an investor and asset manager focused on residential real estate, says it’s Tricon Lifestyle Communities venture has bought three manufactured-housing communities in California.
Two of the communities, Riverdale Estates and Palmdale Estates, are age-restricted properties. Retirees can buy a prefabricated home and install it on a rented site in the community. The two communities have 336 rental pads located in Indio, California. 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 and is a family community consisting of 85 residential pads. 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 US$30.4 million was satisfied with cash and a seven-year non-recourse financing package at an average 62% loan-to-value and 3.85% 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 US$129 million of assets under management.
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