Capital One Closes $2M Loan for MHC Refi
- Feb 21, 2017
Santa Barbara, Calif.—Capital One recently announced that it has provided a $2.5 million Fannie Mae fixed-rate loan to refinance the Blue Skies Mobile Home Park in Santa Barbara, Calif. The 105-space manufactured housing community (MHC) is currently fully occupied. The proceeds from the transaction will allow the borrower to retire existing higher interest rate debt and cash out equity.
Located at 4280 Calle Real, the property is five miles north of Santa Barbara on U.S. Highway 101 and close to several major shopping centers. Built in 1960, Blue Skies includes a clubhouse, a swimming pool and a laundry room. The park is subject to rent control, so most of the residents have lived there for 10 year or more.
The sponsors have owned Blue Skies since 1991. Moreover, they have been an operator of MHCs, as well as commercial and residential real estate in Santa Barbara County for more than half a century. This is their first transaction with Capital One.
“The sponsors’ existing loan was moving to an adjustable rate, and they were concerned that short-term interest rates were rising. We were able to provide a 15-year long-term fixed rate loan at an attractive rate with interest only for the term, which improved their cash flow,” said Damon Reed, senior vice president & director of MHC finance at Capital One Multifamily.
Virginia-based Capital One also structured the loan to give the sponsors the ability to later expand the property.
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