Issue link: https://read.dmtmag.com/i/720597
SEPTEMBER 2016 29 THE JOURNAL term? Do I need prepayment flexibility? Is non- recourse important? Are additional loan proceeds more important than pricing (higher leverage = higher in- terest rate)? Do I plan to sell in the next few years? And, are future loan advances needed? Beyond these questions, many operators today may have traditional land lease communities with a percentage of rental homes, which can impact the type of lender chosen. For instance Fannie Mae prefers less than 15% rental homes in a com- munity, while some CMBS and Freddie Mac will allow up to 25% and, in certain cases, substan- tially more. Increasingly, community acquisitions include rental home inventory and as such, the capital stack needs to take into account the value of the homes in addition to the traditional value of the community. This is where an experienced advisor can prove invaluable, by structuring the most efficient capital stack for the transaction. Tremont Realty Capital – MH/RV Community Finance Specialists Reputation and experience are probably the most important aspects a borrower needs to look for in either an advisor or a lender. Tremont's complementary services can assist borrowers in navigating this space and provide them with ac- cess to ideal financing solutions whether that is a long term fixed rate loan or a highly structured ac- quisition facility. Whether arranging financing or providing advisory services, Tremont has the ex- perience and knowledge to be an effective advo- cate for those involved in the Manufactured Housing and RV Community Financing space. Tremont has recently arranged financing for the following MH/RV transactions: • The refinance of an all-age MH community in Delaware for $7,840,000 funded through Freddie Mac. This 10-year loan priced in the mid-3% range. • A $6,500,000 non-recourse, bridge loan for the interim financing of a 74% leased Midwestern community. Owner plans to increase occupancy and recapitalize within 3 years. • The acquisition financing of a Grand Rapids, MI community with 50% rental homes for 75% of the total combined purchase price. The mid 4% fixed rate loan was on a non-recourse basis. For more information on how Tremont can help you, please contact Tom Lorenzini, Senior Direc- tor of Capital Markets (312-236-0960, tloren- zini@rmrgroup.com), John Chase, Director of Capital Markets (410-604-1744, jchase@rmr- group.com) or visit Tremont at tremontcapi- tal.com. To learn more about The RMR Group, visit rmrgroup.com HomeCarePlus "The Perfect Addition to Your Home Sales" An Exclusive Warranty For: Manufactured/Modular/ Park Model Homes "A Complete Package Designed for Today's Homes" HomeCarePlus A Warranty Program designed to eliminate Costly Repair Expenses on: Structure, Electrical, Plumbing, Heating, A/C & Appliances HomeCarePlus (800) 851-3738 Office (651) 458-2905 Fax diversifiedprofits@comcast.net \ 25 structure, and houses 180 manufactured housing sites with utility connections. No sites are sized for, or occupied by, RVs and at least 90% of the sites will accommodate double wide homes. The property was developed in 2002 and most of the unit's onsite are within 15 years old. This is an example of a quality property that has been performing very well and was able to se- cure new financing through Fannie Mae. The property averaged 98% occupancy for the previ- ous 24 months with no single month below 97%. Property amenities include: an outdoor swimming pool, playground and fishing pond. Hunt Mortgage Group was pleased to secure new financing for this local investor. Hunt Mortgage Group works closely with developers and park owners offering advice on the various types of financing that will best suit their needs. The firm also helps investors interested in entering the manufactured housing industry with advice for what to look for in a property, common pitfalls, and alternative ways of approaching financing. No two manufactured housing communities are 100% alike. Hunt Mortgage Group helps the prospective owner with some simple items to consider when evaluating a community – are there paved streets or an on-site office? What about off-street parking? In the community, are there no more than 35% of the homes owned by the park? There are a number of factors to evaluate when investing in a manufactured housing community and the Hunt Mortgage Group team is here to help. Areas prime for manufactured housing include the West Coast, Michigan, Florida and the South. As the affordable housing crisis continues, and demand for manufactured housing grows, the availability of these communities will likely extend into new regions. Hunt Mortgage Group is committed to serving this attractive housing sector that helps fill the need for affordable housing options for consumers nationwide. \ 27 Financial Focus 2016