LOS ANGELES, CA—Johnson Capital, a national real estate capital advisory firm, says that Kevin Burkhalter, Senior Vice President in the firm’s Los Angeles office, has arranged, on behalf of a privately held entity, $20,500,000 in permanent financing secured by a 5-star 297-pad mobile home park in Malibu. The property offers residents a variety of on-site amenities and excellent ocean views.
Funded by a major insurance company, the terms of this loan consisted of a 3.74% fixed interest rate for the 20-year fully-amortizing loan term. This rate was more than 2% lower than the previous 2003 loan. Some of the attractive loan features that Johnson Capital negotiated are: a flat 1% prepayment structure after the 15th year of the loan term; the option to re-cast and thus lower monthly debt service following partial repayments; and allowable supplemental (or subordinate) financing.
Commenting on the debt transaction, Mr. Burkhalter said, “Due to the sub-30% leverage and excellent property location, lender competition was significant as evidenced by attractive quotes from four insurance company finalists. Each offered interest rates below 4.0% and reduced prepayment structures in the last five years.”
This is the fifth permanent loan that Johnson Capital has arranged for this repeat client. The Burkhalter team within Johnson Capital has closed over $2.8 billion of financing on more than 38 million square feet of income property, the majority of which was underwritten, negotiated and placed with insurance companies, agencies and CMBS lenders.