Capital One Secures Refi on Texas MHC
- Dec 13, 2016
Dallas—Capital One has announced that it has secured a $5.5 million Freddie Mac loan to refinance Woodhaven, an all-age manufactured housing community (MHC) in Denton, Texas, within the Dallas-Fort Worth MSA. Located at 4181 Silver Dome Road, the property offers 183 home sites and 12 recreational vehicle spaces.
Damon Reed, senior vice president & director of MHC Finance with Capital One Multifamily, originated the transaction. The 10-year loan is being amortized on a 30-year schedule. The refinancing falls in line with the sponsor’s strategy to typically acquire distressed or mismanaged communities in order to remove rundown homes, improve amenities and hold the resulting stabilized properties for the long term. As for Woodhaven, the company used the proceeds of the loan to retire existing CMBS debt and intends to use the remainder to finance 141 new spaces and convert the 12 recreational vehicle spaces into home sites. In addition, the firm plans to develop a clubhouse, office space, swimming pool and maintenance shop and also upgrade water and sewer services.
“The sponsor needed a one-stop solution for a debt refinance, a construction loan, and then a second refinance post expansion. Working closely with Freddie Mac, we were able to provide a financing option that enabled the company to finance most of its construction costs as well as pay off its debt,” Reed said.
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