Bethesda, Md.—Capital One has provided two Fannie Mae fixed-rate loans to refinance senior-only manufactured housing communities (MHCs) in the San Diego and Phoenix metropolitan areas. One $17.7 million loan will be used to refinance 218-space Ramona Terrace in Ramona, Calif., in the San Diego MSA. The other loan for $7.2 million will go to refinance 147-space Imperial Broadmoor in Mesa, Ariz., within the Phoenix MSA.
Both are 15-year loans with interest-only payments for five years, followed by amortization on a 30-year schedule. “The potential for rising interest rates was understandably a concern for the borrower,” senior vice president and Capital One Multifamily Finance’s director of MHC finance Damon Reed told MHN.
“[The borrower] was anxious to get the loans’ rates locked as soon as possible. A fast and efficient rate lock was our main challenge.”
A repeat Capital One customer with 947 California and Arizona MHC assets is the sponsor for both properties. Loan proceeds enabled the sponsor to retire existing, higher interest-rate debt and return equity to their investors.
“We assigned two underwriters to the deals in order to maximize resources,” Reed reported. “One handled the property inspections while the second underwriter prepared the loan committee presentation, saving two to three days.
“The deals were submitted for approval once the inspections were completed. We took advantage of Fannie’s streamlined early-rate-lock commitment to get the deal locked within two weeks and in the end, the borrower was extremely happy and impressed with how quickly we were able to lock the loans.”