National firm buys 3 Sussex communities for $88M
LEWES — RHP Properties has acquired three manufactured home neighborhoods in Delaware’s resort, making it the latest acquisition by the firm in the First State.
Colonial East LP, the owners of Sussex East and Sussex West in Lewes and Colonial East in Rehoboth Beach, struck a deal with RHP at the end of April. The acquisition included all employees of Colonial East and 690 units, with two clubhouses and pools.
According to Sussex County land records, RHP bought the three communities for a combined $88.8 million, which includes $39 million for Colonial East, $26.3 million for Sussex West, and $23.5 million for Sussex East. It’s not clear if RHP paid more for the business operations.
“RHP Properties is pleased to announce the acquisition of this portfolio, which features three well-established communities in an area known for its high quality of life,” RHP Properties CEO Ross Partrich said in a statement. “RHP is proud to continue the 50-year legacy of the local ownership group that developed these communities and carry on their tradition of excellence and service.”
Colonial East LP can trace its roots to 1972, as brothers Norbet and Raymond Paszkiewicz partnered with Warren Class to build affordable housing for the Delaware beach community, starting with Colonial East. The venture was joined by various family members, including sons Steve and Mark Class and Greg and Tony Paszkiewicz, and grandson Ryan Class.
Sussex East was built in the 1980s as a 55 and older community and 10 years later was joined by Sussex West. Both communities are located directly on the Georgetown-Lewes Trail, a pedestrian and cycling trail that takes residents directly to the beach and shares a clubhouse with an indoor pool.
Colonial East LP was reportedly not marketing its portfolio, but the principals have known RHP Properties for many years. Based in Michigan, RHP has acquired 311 manufactured home communities nationwide, valued at $6 billion.
In Delaware, RHP Properties already owned four communities: Murray Manor in Wilmington, Ridgewood Manor in Smyrna, Shady Park in Selbyville and Wild Meadows in Dover. In total, all seven communities include 2,206 home sites.
“We will be immediately making capital improvements to each of the communities including enhancements to the clubhouses and common areas, new landscaping, signage, as well as long-term improvements,” RHP Properties Senior Vice President of Acquisitions Josh Mermell said.