Rutherford Investments’ Multifamily/Mobile Home Portfolio Obtains $174M in Financing

Rutherford Investments has obtained $174 million in financing for a multifamily and mobile home park portfolio that the company owns in California.

Phoenix—Rutherford Investments has obtained $174 million in financing for a multifamily and mobile home park portfolio that the company owns in California. The portfolio consists of three multifamily properties containing 936 units and another four mobile home parks containing 577 pads.

Each of the properties now has a permanent, fixed-rate loan with a 10-year term that’s interest only. The loans were provided by Fannie Mae through Walker & Dunlop; the deals were arranged by Johnson Capital’s Dave Susank and Neal Churney, out of the company’s Phoenix office.

The loans range in size from $10 million for the 126-unit Villa Huntington Mobile Home Park in Huntington Beach to $65 million for the 428-unit Alicante Apartments in Aliso Viejo. Other properties in the portfolio include Vista Green Valley Mobile Home Park, 157 pads, in Vista; the Plum Tree Apartments, 116 units, in Martinez; Rancho Vista Mobile Home Park, 168 pads, in Sonoma; Americana Mobile Home Park, 175 pads, in Paramount; and Ballena Village Apartments, 392 units, in Alameda.

According to Susank, the quality of the underlying assets fostered a tight competition for the loans. Ultimately, Fannie Mae proved to be the best fit, though he says that Freddie Mac, as well as several national banks and life insurance companies, also made aggressive bids.

Multifamily lending origination continues to grow nationwide, says the Mortgage Bankers Association. In its most recent quarterly report on the matter, the MBA notes that the overall increase in commercial and multifamily lending volume during the second quarter of 2013, compared with the same quarter last year, was 7 percent. The increase was mainly driven by multifamily originations, which were up 31 percent year-over-year.