MHProNews has learned from Capital One that the company has arranged a $14 million Fannie Mae fixed-rate loan to refinance Rincon Country Mobile Home Park in Tucson, Arizona. Damon Reed, Senior Vice President and Capital One’s Director of MHC (manufactured housing community) Finance arranged the transaction to retire existing higher-rate interest debt.
The key principal, a repeat customer of Capital One and Reed, has owned the property for nearly 40 years. “Even though the existing loan had not yet reached maturity, the sponsor was concerned that interest rates would rise if they waited,” said Reed. “We recommended an early rate lock.” Although there was a penalty for prepayment on the existing loan, the owner will save $150,000 a year in interest. The 12-year loan has ten years of yield maintenance.
Developed in 1971, Rincon is a 540 home site age-restricted MHC ten miles from downtown Tucson, and features a clubhouse, swimming pool, rec center and library. ##
(Photo credit: Rincon Country Mobile Home Park-Tucson, AZ)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.