MIDDLETOWN, DE—The Reybold Group secured a $13 million loan to refinance a 412-pad site manufactured housing community here called Villagebrook.
Meridian Capital Group's Jim Bologno arranged the mortgage with a regional balance sheet lender. The five-year loan has a fixed rate of 3.5%.
Located at 404 Adler Ave., Villagebrook is transitioning from older units to newer and larger units in order to raise rents, Bologno explains—a process that requires combining sites to accommodate the larger structures. Meridian had to explain to lenders the upside reducing the total number of sites, Bologno says. A line of credit was also arranged to help facilitate the transition.
In general, over the course of the past four years or so lenders have become more accepting of manufactured housing loans, Bologno tells GlobeSt.com. "They realize that many of these communities have the same risk profile as a multifamily project does.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
