The fixed-rate financing, arranged through Fannie Mae DUS, retires a loan two years early with the Birmingham, AL-based Collateral Mortgage Capital, according to Damon Reed, a vice president with GMAC Commercial Mortgage. He says the borrower, Belaire Manor Manufactured Home Communities LLC of Newport Beach, CA, wanted a lower interest rate on the mortgage for the 36-acre development at 5601 W. Missouri Ave.
"We were able to lock in a nine-year, fixed-rate loan at 5.59% which lowered the borrower's rate by 235 basis points," Reed says. The borrower also has a one-year extension option at 240 basis points over Libor at the end of the loan term. According to Reed, the loan closed in 30 days.
The 90%-occupied Belaire Manor Manufactured Home Community was developed in 1976. Reed says occupancy historically is more than 98%. The average rent is $312 per month. The borrower owns and manages eight communities in California, Arizona and Washington.
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