MHProNews has learned Capital One arranged an $11.9 million fixed-rate Freddie Mac loan to refinance Catalina Village, an all-age manufactured home community (MHC) in Phoenix, Arizona. The borrower has owned Catalina for 20 years and regular investments in capital improvements have helped maintain a high occupancy rate. Proximity to two interstates and downtown Phoenix adds to the attractiveness of the MHC.

Damon Reed, Senior Vice President and Capital One’s Director of MHC Finance, originated the transaction which will retire higher-rate debt and provide funds to purchase other properties. He said, “We were able to lock the rate early before treasuries increased dramatically. The interest rate on the new loan was approximately 200 basis points lower than the rate on the loan that was paid off.” By retiring his existing debt early, the owner of the 376 home site community incurred a penalty.

The 30-year fixed-rate loan has 10 years of interest-only payments, seven years of yield maintenance, and payable on an actual/360 basis. ##

(Photo credit: Catalina Village, Phoenix Arizona)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.