NEW YORK, Aug. 4, 2020 /PRNewswire/ -- Hunt Real Estate Capital has provided three Fannie Mae conventional loans totaling $41.4 million to refinance manufactured housing communities (MHCs) in the western U.S.
In all three transactions, the refinance lowered the interest rate significantly and provided cash-out to the borrower while retaining reliable, long-term cash flow. The experienced sponsor, a repeat Hunt client and Fannie Mae borrower, has owned and managed MHC properties for over 30 years, with a portfolio of over 2,100 sites.
"It's a testament to both the strong sponsor and our team at Hunt that we were able to deliver on these transactions despite challenges caused by COVID-19," said Chad Hagwood, senior managing director with Hunt. "We were able to successfully conduct virtual inspections on the three MHCs, adhering to our strict and efficient timeline and closing on schedule."
Tempe Cascade Mobile Home Estates is a 273-site, 1971-built property in Tempe, Arizona. Located in Uintah, Utah, Cottonwood Estates is an 83-site MHC developed in 1976. Midland MHC, located in Roy, Utah, features 224 sites and a single-family home and was first developed in 1938, then again in 1973. Uintah and Roy are both located roughly five miles south of Ogden, Utah, and approximately 25 miles north of Salt Lake City. The three MHCs are 100% mission-driven and share the same management company.
The Fannie Mae loans on Tempe and Cottonwood share the same terms: a low, fixed interest rate and seven-year term. On Midland, the Fannie Mae loan features a low, fixed interest rate, 10-year term, and two years of interest only.
These transactions were arranged by Tom Houlihan of Sterling Financial Mortgage & Investment. With the transactions complete, the properties are situated for strong futures in markets with a demand for quality MHC options.
About Hunt Real Estate Capital
Hunt Real Estate Capital (HREC), a division of ORIX Real Estate Capital, is a leader in financing multifamily housing and commercial real estate. HREC is a source of debt for multifamily, affordable housing, manufactured housing, healthcare/senior living, retail, office, industrial, self-storage, and mixed-use assets through Fannie Mae, Freddie Mac, FHA, its own balance sheet and managed public and private investment vehicles. To learn more, visit www.huntrealestatecapital.com.
Hunt Real Estate Capital
SOURCE Hunt Real Estate Capital