Princeton Village MHC – Princeton, Texas

July 27, 2007 - Union Capital Investments, LLC provided permanent financing for the refinance of Princeton Village MHC. Loan proceeds were $4,460,000 with an Earnout Reserve of $460,000. To qualify for the earnout the Borrower must install 15 homes within the first year of the loan. Proceeds from the reserve will be distributed once the homes are sold, provided income from the homes maintains a 1.20 DSCR. The loan is for a 10-year term and a 30 year amortization period, with an interest rate of 6.46%. The Borrower, who owns and manages over 20 MHCs and 2 RV parks with a total of over 6,800 pads, has owned Princeton Village MHC for ten years and has made significant capital improvements to the property including a swimming pool, basketball court, playground equipment, street repairs, new roofs on storage buildings and landscape upgrades.

Princeton Village MHC is comprised of a 192 pad, all-age, family oriented, 3.5-star MHC that is 75% occupied, and a three building self storage facility with 201 storage units and a total building area of 35,520 SF which is 48% occupied. Pad rents were increased by $20 in June 2007, and are $280 per month, and tenants pay all utilities. There are only two desirable MHCs in Princeton including Princeton Village MHC, and at the other park, located 2.5 miles away, rents are $395 and do not include utilities. Princeton Village MHC appears primed to absorb expected growth in the immediate area.

Tony Petosa of Wells Fargo Commercial Mortgage Group was the broker for this transaction.