Property Type Multi-Family
Financing Type Permanent
Date November 29, 2022
Recapitalization Includes Proceeds for Partnership Buyout and Legacy Hold Strategy; Mobile Home Parks Remain Popular Targets for Fixed Rate Lenders at Attractive Rates
San Jose, Calif. – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $30 million permanent loan to for a partnership buy out on a 315-unit mobile home park in San Jose, Calif. The all-ages community offers three laundry rooms, a clubhouse, heated pools, billiards room, a private conference room, and a BBQ pit with picnic areas, and car, boat, and RV parking along with many other amenities. It offers convenient access to all major regional freeways.
Gantry’s Jeff Matlock, Director, and Crischell Bacarro, Associate, with the firm’s San Francisco and El Segundo (Los Angeles) production offices, respectively, secured the financing on behalf of the borrower, a private investor. The 7-year fixed rate loan was provided by one of Gantry’s long trusted lenders at an attractive fixed-rate in the mid 4% range, with terms including a five-year interest only period transitioning to 30-year amortization.
The transaction was part of a 1031 exchange and a partnership buyout. The borrower needed proceeds from a prior property sale for the down payment to acquire the remaining partnership percentage share. Despite market volatility and tight timing, Gantry was able to find favorable terms for the borrower and to coordinate a smooth closing process during the purchase.
According to Gantry’s Jeff Matlock, “This loan threaded the needle for the borrower to hit all their criteria with a 90-day rate lock, maximum proceeds, five rather than three years of interest only, and an excellent rate in a rapidly rising rate environment. The borrowers have been a minority owner for decades and this acquisition allows them to own the property outright and take control of this generational asset, the financing was a critical portion the partner buy out.”