MIAMI—Mobile home parks aren’t exactly the first asset type that comes to mind when you think about the capital markets revival. But one Miami mobile home park turned financier heads.
Colonial Acres Mobile Home Park just secured $9.15 million in senior debt financing. Aztec Group, a real estate investment and merchant banking firm in Miami, arranged the financing. Aztec senior managing director Howard Taft and director Charles Penan led the charge.
New York-based Ladder Capital Finance provided financing. The loan terms obtained were at a 65% loan-to-value for a 10-year term. The loan carries a 30-year amortization schedule and a fixed interest rate of 5.45%.
“Our team obtained several competitive quotes from other lenders that increased overall lender interest and led to obtaining very favorable terms on behalf of the client,” Taft tells GlobeSt.com. “Typically, mobile home loans are attractive to most lenders because of a steady cash flow and high occupancy, as these factors are key in obtaining favorable loan terms.
Colonial Acres Mobile Home Park is a 296-pad mobile home community located at 9674 NW 10th Avenue. Liberty Investments has owned and operated the property for more than 20 years. The mobile home park’s occupancy rate averages 97%.
“The owners of the mobile home park are going to invest significant dollars to make needed upgrades to the property in the coming months, which will benefit residents of this mobile home community and will enhance the property’s appearance and value,” Penan tells GlobeSt.com. Specifically, ownership will invest $500,000.
Planned improvements will include renovations to common areas such as the clubhouse and pool and management office. Ownership will also add a new entrance gate and upgrade the pavement and drainage systems.
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