Las Colinas MHC – Casa Grande, AZ

June 13, 2007 - Union Capital Investments, LLC provided permanent financing in the amount of $1,000,000 for the refinance of Las Colinas MHC. The loan is for a ten year term with a 30 year amortization period. Payments for the first five years are interest only. The 5.90% fixed rate loan is based on a 56% loan-to-value with debt service coverage of 1.40. Union Capital has previously funded loans for the Borrower, who has been investing in manufactured housing communities and RV parks since 1981 and currently owns six MHCs and RV parks, three office buildings and a shopping center.

Las Colinas MHC is a 150-space age-restricted manufactured housing community located in Casa Grande, Arizona. Casa Grande is a winter season destination for winter residents due to its mild weather, median location between Phoenix and Tucson, and its proximity to many outdoor recreational amenities. Las Colinas is located on 13.09 acres, and offers many amenities including a clubhouse which houses the park office, community room, billiards room, fitness center, library, and restrooms and showers; a laundry building; pool; spa; shuffleboard courts; and horseshoe pits. The community is open throughout the year and has 125 annual leases and some year-round occupancy, but the majority of its occupancy and rent collections is seasonal, from September through April. A Seasonal Reserve was held back at closing to ensure sufficient debt service coverage year-round.

Tom Houlihan of Sterling Financial was the broker for this transaction.