NEWPORT BEACH, CA-One borrower has refinanced two maturing CMBS loans on mobile home parks, and another has paid off a bridge loan for an office building in three new refinancings totaling $31 million, with two of the loans providing significant cash out to the borrower. Principal Jeff Tomei of locally based Knightsbridge Realty Capital, who represented the borrowers in all three deals, tells GlobeSt.com that the mobile home park borrower is Los Angeles-based and the office building borrower is based in Orange County.
Both of the mobile home refinancings are five-year loans by a national bank at a floating rate of 325 bps over 30-day Libor with a 4.25% floor. One is a $14 million loan for a 189-space mobile home park in Orange County, subject to a ground lease, that amortizes over 20 years. The second is a $15 million loan for a 226-space mobile home park located in the Inland Empire on a 30-year amortization.
Tomei says that manufactured housing properties continue to be a favored sector for most lenders who are actively seeking to originate loans. Both of the mobile home property loans “provided a significant amount of cash out to the borrower,” he notes.
The third refinancing was for an 11,381-square-foot, single-tenant office building in Vallejo, CA that is occupied by the Social Security Administration, which has signed a new 15-year lease. The $2.1 mm loan was provided by a life company and paid off a bridge loan in addition to providing proceeds to enhance the space for the SSA. The new loan is for 10 years at a 6.5% fixed rate and a 15-year amortization schedule.
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