The borrower, Tommy Thompson of Phoenix, has owned El Dorado Mobile Estates since 1996. El Dorado, located at 202 North Meridian Rd., is an age-restricted (55 years old and over), four-star manufactured housing community that includes 164 manufactured home sites and 14 RV sites. It also includes a clubhouse with kitchen, restrooms, billiards, Bingo hall and mail kiosk, a swimming pool, spa and shuffleboard courts.
"El Dorado is a nice asset in a good market," says Damon Reed, vice president of GMAC in Birmingham, AL. "Phoenix has been one of the strongest manufactured housing markets in the nation....probably one of the Top Five markets. ...It's retiree driven. We have a lot of great opportunities to place loans in that market."
The 75% loan-to-value financing was funded through the Fannie Mae DUS program with the assistance of Tom Houlihan of Phoenix-based Sterling Financial Mortgage and Investments Inc. The nine-year loan carries a fixed interest rate of 5.36% with the option of extending the maturity for one year at an adjustable rate.
Reed tells GlobeSt.com that the loan allows Thompson to pull out money so he can invest it elsewhere. He says GMAC was competing against a local bank offering a recourse loan at a higher interest rate.
According to Reed, El Dorado did not meet Fannie Mae's lending guidelines, but GMAC was able to obtain a waiver to fund the loan. Fannie Mae requires that 50% of the sites must accommodate multi-sectional homes. The El Dorado development can accommodate 38%.
Reed says the borrower's management expertise was key to funding the loan. Under Thompson's management, El Dorado, which was built in the mid-1970s, is 97% occupied.
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