Hunt Real Estate Capital announced today that it provided a Freddie Mac conventional multifamily loan in the amount of $35 million to refinance a 4.5-star manufactured housing community located in Tempe, Arizona.
Contempo Tempe is a 454-pad, age-restricted (55+) manufactured housing community that features three single-story buildings containing the clubhouse/leasing office, fitness center, and maintenance building. All pad sites are doublewide, although tenants are able to install smaller units on the doublewide sites.
The borrower purchased the property in 2005. The new loan refinanced existing debt and included a cash out that will be used to acquire additional manufactured housing properties. The loan has a 10-year term amortizing over 30 years, and the first three years are interest only.
“The borrower is an experienced manufactured housing community owner/operator who has owned and managed MHC assets for over 30 years,” commented Chad Hagwood, Senior Managing Director and MHC Production Head at Hunt Real Estate Capital. “They have ownership interest in numerous manufactured housing communities located in Arizona and Utah, and are known for meticulous attention to detail in operating properties at the highest level.”
Tom Houlihan of Sterling Mortgage and Investment in Phoenix, Arizona arranged the financing on behalf of the borrower.
“Chad Hagwood and Hunt Real Estate Capital continue to be first-rate lenders for myself and my clients,” stated Houlihan. “Chad and I have successfully financed well over 100 mobile home and RV resort properties over the past years, and I look forward to continuing this relationship well into the future.”
“Contempo Tempe is a best-in-class mobile home park operated by a truly exceptional owner that I have had the privilege of working with for more than 25 years. The pride of ownership is evident by the residents, and this asset is an example of what a mobile home park should be – a great community for great people,” added Hagwood.
The property was built in 1974, and since initial construction, many new homes have been brought into the property. Recent capital improvements include signage updates, a pool remodel, exterior painting, clubhouse A/C replacement, spa heater replacement, security cameras, and upgraded power pedestals. In addition, the borrower plans to replace fencing and damaged gates, and paint the clubhouse exterior.
Contempo Tempe has a complete amenity package that is superior to most in the market. The property has a pool, spa, fitness center, clubhouse with activity space and library, and saunas. The borrower has plans to renovate the existing shuffleboards into a two-court pickleball arena with shaded bleachers.