ValueXpress has arranged a $3.2-million CMBS conduit loan for the refinance of a 66-site manufactured housing community (MHC) located in Eugene, Oregon. All the homes are double-wide units. The transaction provided over $2 million of cash-out proceeds to the owner. The market for housing in Eugene is strong and the community is 100% occupied.
The community was permitted and constructed by the owner in 1996. The park originally consisted of 54 homes. The owner recently developed the remaining 12 sites, purchased homes to be place on the sites and resold the home to new tenants to bring the park to 100% occupancy with no park-owned homes.
“The transaction was closed in the midst of the COVID-19 epidemic,” commented Michael Sneden, Executive Vice President at ValueXpress. “Many CMBS lenders are shut down; however, our relationships are long standing, so we were able to get this loan closed despite the affects of the pandemic on the credit markets,” said Sneden. “In addition, the loan did not require any structure due to COVID. While other lenders are requiring a debt-service reserve for up to 12 months, the CMBS market is not requiring this reserve.” As a result, the owner received the maximum amount of cash-out loan proceeds intended for additional real estate investments.
To obtain a no-obligation loan quote on your next CMBS transaction, contact a member of the ValueXpress team: Mike Sneden (firstname.lastname@example.org), Dennis Suh (email@example.com) or Gary Unkel (firstname.lastname@example.org).