Capital One announced it has provided a $4.6 million Fannie Mae fixed-rate loan for the acquisition of Ocean West, a 127-unit, age-restricted manufactured housing community (MHC) in McKinleyville, California. Damon Reed, Senior Vice President and Capital One Multifamily’s Director of MHC Finance, originated the transaction.  The sponsor has specialized in the MHC segment for more than 30 years and is a repeat client of Capital One.
 
Ocean West, built in 1979 and extensively renovated in 1996, is located less than one mile from Mad River Beach County Park on the Pacific Ocean. This high-quality property consistently operates at full or near-full occupancy.  Affiliated entities own two adjacent parcels of vacant land, which may be used to expand the community. “To facilitate this expansion, we inserted language in the loan documents that would allow the second phase to be added to the existing collateral at a later date,” Reed said.  “This sets the stage for an additional loan once the second phase is leased.”
 
The sponsor was pleased with the results, noting that Capital One’s attention to detail and keen understanding of their business model allowed the bank to present a financing structure that anticipated the sponsor’s needs.
 
The 12-year fixed-rate loan has 11.5 years of yield maintenance and five years of interest-only payments, followed by a 30-year amortization payable on an actual/360 basis.
 
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.