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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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January 6, 1998
(Date of Report (Date of Earliest Event Reported))
CHATEAU COMMUNITIES, INC.
(Exact Name of Registrant as Specified in Its Charter
Maryland 001-12496 38-3132038
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
6430 So. Quebec Street, Englewood, Colorado 80111
(Address of Principal Executive Offices) (Zip Code)
(303) 741-3707
(Registrant's Telephone Number, Including Area Code)
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Item 5. Other Events
Since October 1, 1997, Chateau Communities, Inc. ("Chateau"), through
its operating partnership, CP Limited Partnership (the "Operating Partnership"
and, together with Chateau, the "Company") has completed the following
unrelated acquisitions:
1. On November 5, 1997, the Company acquired from an unrelated and
unaffiliated Seller a portfolio of four properties located near Boston,
Massachusetts (the "Boston Portfolio"). The Boston Portfolio consists of an
aggregate of 641 home sites with an additional 150 sites available for future
expansion. The Company funded the aggregate purchase price of $20,000,000
(exclusive of acquisition costs) by borrowing $19,500,000 under its line of
credit and by issuing 16,480 units of limited partner interest in the
Operating Partnership ("OP Units").
2. On January 6, 1998, the Company acquired from an unrelated and
unaffiliated Seller two properties located in Berkeley and Dorchester County,
South Carolina (the "Tamsberg Properties"). The Tamsberg Properties contain an
aggregate of 961 home sites with an additional 150 sites available for future
expansion. The Company funded the aggregate purchase price of $15,396,000
(exclusive of acquisition costs) with proceeds from the debt offering which was
completed in December, 1997 and through the issuance of 396,000 OP Units.
3. On January 8, 1998, the Company acquired from an unrelated and
unaffiliated Seller four manufactured home communities (containing an aggregate
of 474 home sites) located in Connecticut and Florida and one park model
recreational vehicle community (containing 263 sites) located in Florida. The
Company funded the aggregate purchase price of $14,200,000 (exclusive of
acquisition costs) by borrowing under its line of credit. In addition to the
five acquired properties, the Company entered into 30-year leasehold agreements
with respect to seven other manufactured home communities (containing 898 home
sites) and two park model recreational vehicle communities (containing 1,096
sites). The Company also took back an $11,000,000 first mortgage secured by the
underlying fee interests in the nine leased properties. The aggregate rent
under the lease agreements (after debt service on the mortgages) is $867,000
per year.
The factors considered by the Company in determining the price to be
paid for the acquired and/or leased properties included their historical
and/or expected cash flow, the local and regional economy and market, nature
of the tenants and terms of leases in place, occupancy rates, opportunities
for alternative and new tenancies, current operating costs and taxes on the
acquired properties and anticipated changes therein under Company ownership,
the expansion areas available, the physical condition and location of the
acquired properties, the anticipated effect on the Company's financial results
and other factors. The Company took into consideration capitalization rates at
which it believes other similar properties have recently sold, but determined
the prices it was willing to pay primarily on the factors discussed above and
the fit of the properties with the Company's operations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 21, 1998 CHATEAU COMMUNITIES, INC.
By: /s/ Tamara D. Fischer
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Tamara D. Fischer
Chief Financial Officer
