Rail’s End ROC – Wildwood, FL

April 30, 2007 - Union Capital Investments, LLC provided permanent financing in the amount of $1,920,000 for the acquisition of Rail’s End MHC. This park was acquired and converted to a Resident Owned Community for a purchase price of $2,400,000. The buyer was a newly formed entity comprised of 35 shareholders of the park. The 6.09% fixed rate loan represents 75% of the appraised value. The loan was underwritten to a 1.21 debt service coverage ratio based upon the park operating as a conventional MHC, with all shareholders and current tenants paying market rents. The loan is for a term of 10 years and a 30 year amortization period.

The acquisition of the park by the current tenants insures that the park will not be converted to an alternative use in the future, and allows them to insure they control the future direction of the park. A special feature in the loan structure was designed to accommodate the special nature of the owner: Shareholder Maintenance Fees must be set at a level which, when combined with rents from the remaining tenants will result in a 1.10 debt service coverage ratio.

Rail’s End is a 112 site, 3-star retirement park, developed in the 1970’s and located in Wildwood, Florida. The property is situated on a total of 14.00 acres, providing for a density of 8.0 units per acre. Amenities include clubhouse, laundry, heated pool, historical caboose, shuffleboard and horseshoes. The park has a history of high occupancy and is currently 100% occupied. Rents were increased in January 2007 and average $296 per month.

Florida Community Services Group of Treasure Island, FL acted as the facilitator for the co-op conversion, and Tremont Realty Capital of Chicago arranged the financing.