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DENTON, TX-In a 51-day turn, a local owner of two manufactured housing developments has managed to secure a $10.5-million refinance with a seven-year term and 5.48% fixed-rate interest.

Lakewood West Joint Venture, led by RJ Button of Denton, locked in the interest rate within three weeks of the application being submitted to GMAC Commercial Mortgage Corp., says Damon B. Reed, vice president and director of the manufactured home division for the Horsham, PA-headquartered GMACCM. The collateral is Lakewood Estates at 3939 Teasley Lane and Denton West at 3900 Teasley Lane. The Denton properties contain 666 multi-sectional and traditional housing units.

Reed tells GlobeSt.com that the borrower took a prepayment penalty hit to retire a loan with Collateral Mortgage Capital LLC of Birmingham, AL and used additional funds to repay the JV partnership, which developed Lakewood West in the 1980s and acquired Denton West about 15 years ago. The refinance, which lowered the interest rate by nearly 160 basis points, was structured so the borrower could return for a second mortgage, if needed, according to Reed. The gist of the deal is the borrower “wanted to take advantage of the low rates while they’re still around,” he says about a deal channeled through Fannie Mae’s DUS program.

Lakewood West, totaling 407 dwellings, is 90% occupied. Denton West, located across the street, 259 dwellings that are 78% leased. The sister properties, operating under one umbrella, both have recreational facilities, including a lake and RV storage areas.

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