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Alliant Credit Union provides $48.5 million loan to refinance Phoenix Manufactured Housing Community
Five-year, interest-only loan includes equity recapture and future earn-out
CHICAGO , . (December 14, 2021) — Alliant Credit Union announced that it has closed a $48.5 million mortgage for the refinance of a manufactured housing community and RV park serving the 55-and-over demographic in Apache Junction, Ariz. The suburban community is located approximately 35 miles east of Phoenix.
Located on a 72-acre site, the resort-style park was built in 1983. Its extensive amenities include a clubhouse with a banquet hall, business center, spa and outdoor pool. The park also offers programming for active residents. Its 433 home sites have been fully occupied since 2018 with a year-round population, with 124 RV sites accommodating seasonal residents.
The loan was structured to support the owner’s business plan. Provisions of the interest-only, five-year loan included equity recapture, future earn-out and a moderate loan-to-value ratio. Proceeds were also used to pay off existing debt.
Apache Junction is part of the larger Phoenix metropolis about 35 miles to the west. As one of the fastest-growing cities in the United States, metropolitan Phoenix is expected to continue to grow into the future. Consumer demand for manufactured housing has grown as the population has grown and residents have sought an affordable housing option. Investors are attracted to the limited development of new manufactured home sites in the Phoenix area, coupled with rising rents.
Patrick Barkley, Principal, Gantry referred the refinancing transaction to Alliant.
“Alliant is proud to work with an experienced and professional sponsor on this loan closing,” said Peter Margolin, Commercial Loan Originator, Alliant Credit Union. “We were pleased to provide a tailored solution to support this Class A, resort-style community with a proven, longstanding history of profitable operations and strong occupancy.”
