Hunt Real Estate Capital announced it 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.”
The first MHC, located in Tempe, Arizona, is Tempe Cascade Mobile Home Estates, a 273-site property built in 1971. Located in Uintah, Utah, Cottonwood Estates is an 83-site MHC developed in 1976. The third is Midland MHC, located in Roy, Utah, which 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 north of Salt Lake City. The three MHCs are 100% mission-driven and all share the same management company.
The Fannie Mae loans on the first two MHCs, Tempe and Cottonwood, share the same terms: a low, fixed interest rate, seven-year term, and 30-year amortization. On Midland, the Fannie Mae loan features a low, fixed interest rate, 10-year term, 30-year amortization schedule with two years of interest only, and a maximum LTV of 75%.
These transactions were arranged by Tom Houlihan of Sterling Financial Mortgage & Investment. With the Fannie Mae transactions complete, the three properties are now situated for strong futures in markets with a demand for quality MHC options.