Capital One provided a $14 million Fannie Mae fixed-rate loan to refinance Rincon Country Mobile Home Park, a 540-space, age-restricted manufactured housing community (MHC) in Tucson, Arizona. Damon Reed, Senior Vice President and Capital One’s Director of MHC Finance, originated the transaction.  The key principal is a repeat customer of both Capital One and Reed. The proceeds of this loan allowed the sponsor, which has owned the property for almost 40 years, to retire existing higher-rate debt and to return equity to the partnership.
 
“Even though the existing loan had not yet reached maturity, the sponsor was concerned that interest rates would rise if they waited,” said Reed. “We recommended an early rate lock.” Capital One was able to lock in a favorable rate within one week of the loan application being accepted; despite a prepayment penalty, the sponsor will save over $150,000 a year in interest. 
 
Rincon was developed in 1971 and is located 10 miles east of downtown Tucson.   Project amenities include an office/clubhouse area, a community swimming pool, a recreation center and a library.
 
Rincon was the second loan that Capital One closed with the sponsor in as many months. The 12-year fixed-rate loan has 10 years of yield maintenance.
 
Capital One is a leading provider of Agency financing for manufactured housing communities. 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.