Capital One Secures Refi for SoCal Affordable Community
- Apr 19, 2017
Capital One secured an $8.5 million Fannie Mae fixed-rate loan to refinance Bravo Mobile Home Park, a 156-unit manufactured housing community in Riverside, Calif. Damon Reed, senior vice president & Capital One multifamily finance’s director of MHC finance, originated the transaction.
Constructed in 1974, the property caters to low-income residents: 20 percent of the spaces are reserved for tenants making 50 percent or less of the average median income, 60 percent for those making 80 percent or less and 20 percent for those making 120 percent or less. Property amenities include a clubhouse, pool, spa, playground and park. Located at 4041 Pedley Road, the community is fully occupied.
Repeat Capital One customers holding MHC assets which total 940 spaces in California and Arizona sponsored the fixed-rate 15-year loan, which matures in 2021. Bravo is one of three properties that the sponsors have refinanced early with Capital One, allowing them to retire existing debt and to return equity to their investors. The loan has five years of interest-only payments and amortizes on a 30-year schedule.
“With interest rates potentially rising, the sponsors decided it made sense to refinance early, pay prepayment penalties, and lock in historically low rates for the long term,” Reed said in prepared remarks. “This approach is particularly appropriate for their buy-and-hold strategy.”
Capital One’s recent West Coast transactions also include a $10 million Fannie Mae adjustable-rate loan for the acquisition of a 116-unit apartment community in Modesto, Calif.
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