MIDDLETOWN, DE—The Reybold Group secured a$13 million loan to refinance a 412-pad sitemanufactured housing community here calledVillagebrook.

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Meridian Capital Group's Jim Bologno arrangedthe mortgage with a regional balance sheet lender. The five-yearloan has a fixed rate of 3.5%.

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Located at 404 Adler Ave., Villagebrook is transitioning fromolder units to newer and larger units in order to raise rents,Bologno explains—a process that requires combining sites toaccommodate the larger structures. Meridian had to explain tolenders the upside reducing the total number of sites, Bolognosays. A line of credit was also arranged to help facilitate thetransition.

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In general, over the course of the past four years or so lendershave become more accepting of manufactured housing loans, Bolognotells GlobeSt.com. "They realize that many of these communitieshave the same risk profile as a multifamily project does.

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