Both of the properties were built in the 1970s. The larger of the two refinancings was for a 421-space mobile home park located in Eastern Los Angeles County that was financed by a national bank to pay off the balance sheet lender. Terms of this deal included a $14 million loan with a five-year term at a floating rate of 375 bps over 30-day Libor with a 5% floor. The loan carries a 1% prepayment penalty.
The other refinancing was for a 140-space park located in the Inland Empire that was refinanced by a regional bank to pay off the maturing CMBS loan. Terms of the deal included a $3.55 million loan with a 30-year term and a 30-year amortization at a 6.5% fixed rate during the first six months, then adjusting to 2.45% over the 11th District Cost of Funds with a 6.5% floor. The loan carries no prepayment penalty.
Tomei says that a challenge for the 140-space park was its location in the Inland Empire, which has one of the hardest-hit residential real estate markets in the country. But that challenge was "mitigated by the long-term ownership and continued strong occupancy and operating history" of the lender, Tomei says. The 421-space park faced a challenge in that it is subject to a ground lease that expires in less than 20 years, he adds. He notes that both loans provided cash out to the borrower, an operator of mobile home parks, although the amount of cash out was modest.
Knightsbridge, founded in 2002, structures equity and debt for investment real estate. The firm has closed more than $2 billion in financings since its founding.
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