Edgewater, Fla. – Andy Moses, senior vice president and senior director of NorthMarq Capital’s Orlando Regional office, and Melissa Marcolini-Quinn, assistant vice president and senior investment analyst, arranged first mortgage financing of $24 million for Hacienda Del Rio, a 730-pad manufactured housing complex located here.
Financing was based on a 10-year term with a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its affiliate AmeriSphere Multifamily Finance LLC, a Fannie Mae DUS lender.
According to Moses, this was a conservatively underwritten transaction that permitted the owner to retire $18 million of existing debt plus extract significant cash at a very favorable interest rate.
An important owner consideration in selecting the lender for this transaction was that the AmeriSphere/FNMA loan documents permit up to two supplemental financings during the 10-year loan term. In addition, the owner elected to pay a small prepayment premium applicable to the exiting financing in order to take advantage of the favorable current interest rate environment and eliminate rate risk in the future.
“The project initially did not qualify for FNMA financing based on the number of pad sites located within FEMA designated floor areas. AmeriSphere was very patient as NorthMarq worked through FEMA’s LOMR-F process to remove the majority of these pad sites from a non-qualifying flood designation. This effort not only permitted the project to qualify for FNMA financing, but also substantially enhanced underwritten income thereby qualifying for significantly higher loan proceeds,” says Moses.