LARGO, FL-Atlanta-based Union Capital Investments LLC has provided $43.25 million in financing for the acquisition of three mobile home parks located north of the Tampa-St. Petersburg area. Two of the properties, located in Largo, were converted into resident-owned communities and the third, in Hudson, was acquired by the nonprofit corporation formed to acquire the Largo properties.

Located in Largo, the Four Seasons and Pointe West parks were acquired by current tenants through the formation of a nonprofit corporation to ensure they will remain residential communities and are not converted to alternative uses in the future. Lucinda Warren, of Crystal Beach, acted as the facilitator for the conversions and Chicago-based Tremont Realty Capital arranged the financing for the Hudson property.

The loans for the Four Seasons and Pointe West properties included a number of special features designed to accommodate the nature of the transaction. Shareholder fees must be set at a level which, when combined with rent from the remaining tenants, will result in a 1.10 debt service coverage ratio. Also, a portion of the proceeds of the sale of future shareholder units will be deposited with the lender. These deposits will be used to pay down the principal balance of the loan without penalty. "We've seen a few more of these types of transactions this year but not an overwhelming amount," a Union Capital spokesman tells GlobeSt.com.

The 335-space, age-restricted Four Seasons park is located south of the Largo Mall and other major retail destinations. A $13.5-million, five-year, interest-only loan was issued for the property. The 6.64% fixed-rate loan represents 78% of the purchase price and 75% of the appraised value.

Pointe West is a 341-space, four-star, age-resisted park. The $12.75-million loan amount represents 73% of the purchase price and 71% of the appraised value. The 6.22% fixed-rate loan is for a 10-year term, with interest-only payments for the first two years and a 30-year amortization schedule thereafter.

Club Wildwood is a five-star, age-restricted park located in Hudson. The $17-million, five-year interest only loan represents 79% of the purchase price and the appraised value. The property is being purchased by an entity which is comprised of the nonprofit corporations owning Four Seasons and Pointe West.