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Capital One Closes $5MM FNMA Loan to Refinance Housing Community

April 01, 2016, 06:52 AM
Filed Under: Real Estate

Capital One provided a $5.0 million Fannie Mae fixed-rate loan to refinance the Napa Olympia Mobile Lodge, a 201-space manufactured housing community (MHC) in American Canyon, California, 75 miles northwest of San Francisco. Damon Reed, Senior Vice President and Capital One Multifamily’s Director of MHC Finance, originated the transaction.
The sponsors are experienced owners and operators who focus on manufactured housing communities in Western coastal markets. This is their 11th Fannie Mae transaction with Capital One Multifamily. Proceeds from the loan allowed the sponsors to retire existing, higher-interest-rate debt, complete renovations to the property, and return equity to the partnership.
The sponsors acquired the asset in 2005 with a ground lease in place.  The lessor agreed to extend the term of the lease from seven years to 32.5 years from execution, which allowed the sponsors to place new long-term debt on the property.  The lessor, however, had imposed a hard deadline on the transaction.  “Our goal at Capital One is to do whatever it takes to meet the needs of the client,” Reed said.  “Thanks to the dedication of our staff, we were able to close the loan on time, just 35 days from loan application.”
Napa Olympia was constructed in 1968 and is considered a family park.  Amenities include a swimming pool, spa, and RV storage.  The community is located within two miles of I-80, which provides access to both the greater San Francisco Bay area and the Sacramento region.
The fixed-rate loan has a 30-year term with a 30-year amortization schedule payable on an actual/360 basis and 15 years of yield maintenance, followed by one percent until the last 90 days.
Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending.


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