Capital One announced it has provided a $7.0 million Fannie Mae fixed-term loan to refinance Coddingtown Mobile Estates, a 117-space manufactured housing community (MHC) in Santa Rosa, California. Damon Reed, Senior Vice President and Capital One Multifamily Finance’s Director of MHC Finance, originated the transaction.

The 10-year loan has two years of interest-only payments followed by amortization on a 30-year schedule.

The key principals have over 30 years of commercial real estate experience, and together own 39 manufactured housing communities in California. Concerned about rising interest rates, but eager to avoid a large prepayment penalty on their existing CMBS loan, they started the refinance process early in 2016 and exercised a six-month forward rate lock.

“We’re constantly assessing what options best serve our clients’ interests, however for these key principals the forward rate lock works well. So we have completed a number of similar transactions for them,” said Reed. “It is an option that has proven useful as they transition from CMBS financing.” This is the 12th transaction these key principals have completed with Capital One. In addition to allowing them to retire their existing debt on Coddingtown, proceeds from the loan will enable them to purchase other properties and to upgrade Coddingtown by installing solar panels.

Located near Highway 101, Coddingtown is close to major retail centers, hotels, and educational institutions.

Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending.