Collateral Mortgage Structures Creative Loan

EDGEWATER, FL-Garnering a 4.76% interest rate in today’s fluctuating mortgage rate environment is an achievement by itself. Winning a refinancing at that rate without having to pay a prepayment penalty is considered a homerun in the industry. That’s what the owners of Hacienda Del Rio Manufactured Home Community in this city were able to do at their 730-site, 158-acre community 10 miles south of Daytona Beach and 40 miles north of Downtown Orlando.

The Orlando office of Birmingham, AL-based Collateral Mortgage Capital LLC structured the deal and funded the new mortgage through New York-based JPMorgan Investment Management.

The financing was set up as a seven-year loan amortized over 25 years. With an interest rate of 4.766%; a loan-to-value of 73.9%; and a debt service coverage of 1.34x, the deal combines a future advance component, a forward commitment component and an earn-out component.