SAN DIEGO—HFF has arranged $65.7 million in combined financing for 11 manufactured home communities totaling 1,605 home sites located in California and Oregon since April.
Financing for the 11 properties closed in separate transactions between April 1 and July 15, 2015. HFF executed the individual loans with a variety of capital sources including Freddie Mac, Fannie Mae, life insurance companies, CMBS conduits and regional banks. All 11 loans feature 10-year fixed-rates, 30-year amortizations and are non-recourse. The financing requests were widely marketed by the HFF team, and the most optimal lender was selected for each property with respect to loan proceeds, rate and terms.
Individual transaction details are listed below:
Property Name and Location Home Sites Loan Proceeds
Stardust – Colton, California 103 $3,525,000
Sierra Lakes – Rocklin, California 228 $11,000,000
Heritage Oak Glen – Orangevale, California 121 $6,000,000
Cordovan – Sacramento, California 177 $9,100,000
Town & Country Estates – Orcutt, California 185 $7,515,000
Hollywood Estates – Salem, Oregon 115 $4,000,000
Merced – Merced, California 120 $3,500,000
Starlite – Fontana, California 80 $3,640,000
Royal – Windsor, California 88 $4,620,000
Twin Lakes – Shasta, California 182 $6,800,000
Royal Crest – Fortuna, California 206 $6,000,000
The HFF debt placement team representing the borrowers was led by director Zach Koucos and senior managing director Tim Wright.
“The capital marketplace for manufactured home communities is extremely healthy,” Koucos said. “Demand for MHC's on the part of lenders and investors alike, particularly in coastal markets, is as strong as we have ever seen. More people are taking note of the merits of this asset class, and it has created significant competition.”
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
