Capital One announced it has provided Fannie Mae structured adjustable-rate (SARM) loans totaling $60.8 million to refinance four manufactured housing communities (MHCs) in California.  Senior Vice President Chad Thomas Hagwood originated the transaction and Brandon Pate of Hagwood’s team managed the deal.  Hagwood leads Capital One Multifamily Finance’s Southeast region out of the Birmingham, Alabama, office, and is one of the most experienced MHC originators in the industry.

The ten-year SARM loans have a three-year interest-only period followed by amortization on a 30-year schedule.

The borrower, the Kort & Scott Financial Group, has an 18-plus year relationship with Hagwood and has completed multiple transactions with Capital One. Based in Anaheim, CA, Kort & Scott specializes in buying and managing MHCs across the United States, acquiring over 9,500 mobile home spaces since 1989. The company is using the proceeds from this transaction to retire existing debt and maintain and upgrade the properties.

Capital One provided a $23.5 million loan for Blue Star Mobile Home Community, a 186-space community in Sylmar; an $11.2 million loan for Lamplighter Mobile Home Community, a 173-space community in North Highlands; a $10.3 million loan for Reseda Mobile Home Community, a 108-space community in Reseda; and a $16.0 million loan for Vista Diablo Mobile Home Community, a 150-space community in Antioch.

All four MHCs were built in the 1960s and 1970s and have been well maintained.  They have high occupancy rates, with Reseda reaching 100 percent.  The Reseda and Vista Diablo MHCs are 55+ communities, and Vista Diablo operates under a Home Rent Subsidy Agreement with the Antioch Development Agency.

Capital One Multifamily Finance is a leader in providing creative and timely financing solutions to the MHC industry nationwide. With specialized expertise in Agency finance—including Fannie Mae, Freddie Mac and FHA—the Multifamily team is uniquely positioned to provide borrowers with the best possible solutions for their evolving needs.

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.