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GE Capital, Others Provide Financing for Centerbridge Capital’s New Business Entity

July 12, 2013, 07:27 AM
Filed Under: Real Estate

Centerbridge Capital Partners II, L.P. and its related entities have formed a new business called Carefree Communities, Inc. (Carefree) for the ownership and operation of destination recreational vehicle ("RV") resorts and senior manufactured housing ("MH") communities.

In a press release, Centerbridge notes GE Capital, JP Morgan Chase & Co., and KeyBank NA provided financing to Carefree. Centerbridge also said it was advised by Simpson Thacher & Bartlett LLP. 

Carefree is the result of Centerbridge's June 27, 2013 acquisition of National RV Communities, LLC (NRVC), an owner and operator of 61 destination RV resorts and senior MH communities from Almanac Realty Securities IV, LP (Almanac), an investment fund managed by Almanac Realty Investors.  NRVC is headquartered in Scottsdale, Arizona and operates communities in seven states and Canada, with the majority located in Florida.  The company will operate under the Carefree RV Resorts and Carefree Communities brands. NRVC's senior management team, David A. Napp and Colleen S. Edwards, the Chief Executive Officer and President of NRVC respectively, have co-invested alongside Centerbridge and will lead and manage Carefree.

Carefree has completed the acquisition of three additional properties:  Sun-N-Fun RV Resort in Sarasota, Florida, Sherkston Shores RV Resort in Port Colborne, Ontario, and Regency Heights in Clearwater, Florida; and acquired a leasehold interest in a fourth property, Tropical Palms RV Resort in Kissimmee, Florida.  Including these acquisitions, the combined Carefree platform now has an aggregate asset value of approximately $650 million.

William D. Rahm, Centerbridge senior managing director, said, "We believe this investment represents a compelling opportunity to back a strong and highly experienced management team in an attractive sector. Carefree is well-positioned to acquire additional senior manufactured housing and recreational vehicle communities in what remains a very fragmented industry.  We look forward to working with the Carefree team to build the leading franchise serving active adults in the destination RV and senior MH resort sectors."

David A. Napp said, "We are excited to partner with Centerbridge and feel the acquisition of the new communities positions us as a leader in our industry.  We will continue to focus on providing our active guests a memorable experience through communities that offer vibrant resort style living, friendly and helpful associates, well maintained facilities, and efficient operations, as we acquire additional properties to extend Carefree's role in our sectors."

NRVC was advised by Clifford Chance.  Almanac was advised by Proskauer Rose LLP.  KeyBank Capital Markets, Inc. served as financial advisor to NRVC. 

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