Palm Key MHC – Davenport, FL

May 15, 2007 - Union Capital Investments, LLC provided permanent financing in the amount of $11,270,000 for the refinance of Palm Key MHC. The loan is for a five year term with interest only payments for the term of the loan. The 5.91% fixed rate loan is based on a 80% loan-to-value with debt service coverage of 1.07. Union Capital has financed eight other loans for the repeat Borrower, who owns nine Florida MHCs with a total of 3,681 spaces.

Palm Key MHC is a 204-space, 5.0-star, all-age manufactured housing community in Davenport, Florida. The property was developed in 2000 and is 100% occupied. Although it is an all-age community, 70% of residents are seniors. Amenities include a clubhouse, heated pool and spa, lighted tennis courts, playground and RV storage. The property is situated on 52 acres providing for a density of 3.92 units/acre. All of the homes are double-wide units with screened porches and/or carports, and each pad has a concrete driveway that can accommodate two vehicles. Rents range from $382 to $412 and average $388.66. Annual rent increases are stipulated in the leases, and any increase in real estate taxes is passed through to the residents.

The broker for this transaction was Monroe & Giordano