The Alabama lender funded the 18-year-old, 200-unit Meadowrun Apartments in Pensacola for owner Mitchell Equities of Mobile, AL with a $5.6 million, 10-year loan at 7.4% interest on a 30-year amortization schedule.

The financing was made through Collateral's Smart loan program geared especially to financing commercial real estate transactions, Collateral vice president Jane Z. Harrison says in a prepared statement.

"This particular loan closed in only 55 days from application, which met the borrower's required closing date, enabling the payoff of existing bond financing," Harrison says.

The loan to value was 80% with debt service coverage at 1.26x. The Mitchell Co., based in Mobile with offices in Pensacola, Jackson, MS and New Orleans, manages the Florida limited partnership property.

On the second loan, Collateral refinanced the 239-site, 30-year-old Kissimmee Gardens manufactured home community, 20 miles south of Downtown Orlando. The $5.78 million, five-year loan at 6.26% interest on a 30-year amortization schedule was funded by the lender through Fannie Mae's DUS/Cash Early Rate Lock program.

Collateral underwrote the loan with a loan to value of 75% and debt service coverage at 1.46x. Loan proceeds were used to retire the borrower's existing debt on the property, pay all transaction costs and return a portion of the borrower's equity.

"There was an existing Collateral Mortgage loan on this property that had an interest rate of 8.25%," Collateral vice president Damon B. Reed says in the same statement. "For the refinance, we were able to do an early rate lock for the borrower before rates spiked in March."