Capital One Multifamily Finance announced it has provided a $7.3 million Fannie Mae fixed-rate loan to refinance Rodeo Mobile Estates, a 204-space seniors manufactured housing community (MHC) located in Soquel, California, near Santa Cruz. Damon Reed, Senior Vice President and Capital One Multifamily’s Director of MHC Finance, originated the transaction.  The key principals, repeat customers of both Capital One and Reed, have owned the community since 1998.

The principals’ priorities were to generate funds to maintain the property and locking in lower interest rates for the next 10 years.  “The sponsors were aware that interest rates could rise before their existing loan matured in 2016,” Reed said.  “They determined that the best course of action for them was to absorb the prepayment penalty and refinance early.  In the process, they reduced their interest rate by nearly 200 basis points.”

Built in 1975, this four-star community offers a suite of amenities that includes a clubhouse with billiards, game room, and library, as well as a pool, shuffleboard court, and laundry.

The 10-year fixed-rate loan has 9.5 years of yield maintenance and a 30-year amortization payable on an actual/360 basis.

Capital One Bank’s Commercial Real Estate Group provides financing in markets nationwide, offering a comprehensive array of solutions for property owners and developers, including balance sheet and agency lending, financing, underwriting, and treasury management.