Birchwood MHC – Chugiak, AK

August 13, 2007 - Union Capital Investments, LLC provided permanent financing in the amount of $705,000 for the refinance of Birchwood MHC. The 7.07% fixed rate loan is based on an 71% loan-to-value with debt service coverage of 1.20. The loan is for a 7-year term and 30-year amortization. The Borrower has been active in the development and acquisition of manufactured housing communities throughout the country for over fifteen years and currently owns 23 parks, including four in Alaska, containing 5,983 sites with an average occupancy of 91%. Union Capital has financed fifteen other loans for the Borrower in the past five years.

Birchwood MHC is a 39-space, 2.5 star community located in Chugiak, Alaska. Rents are $300 per month and include water, sewer and trash pickup. Occupancy is 100% and has been at this level for two years. The local MHC market is strong, with overall occupancy of 97.3%. Birchwood MHC is 20 miles from Anchorage and benefits from its location within Chugiak, a rapidly growing suburban area. Birchwood’s occupancy is likely to remain high, as the city government discourages further development of MHCs, limiting supply in the area.

Tom Lorenzini of Tremont Realty Capital was the broker for this transaction.