Chicago (June 5, 2017) – Pillar, a division of SunTrust Bank and an industry leader of financing solutions for affordable and market rate multifamily and healthcare properties, announced today that it has originated $7.75 million to refinance Tallgrass MHC in Coldwater, Michigan and Oakwood Estates MHC in Springfield, Illinois. Both properties are owned and operated by Littleton, Colorado-based FR Community, a portfolio of nine communities located across the country that feature more than 1,600 home sites. Adam Klingher, Managing Director of Pillar’s Multifamily and Manufactured Housing Group located in Chicago, closed the loans on May 19, 2017.
Pillar originated a Fannie Mae loan to refinance Tallgrass MHC, a 3-star, all-age manufactured housing community built in 1972. Tallgrass MHC contains 239 sites that predominantly feature single- wide homes. The property was 90 percent occupied at time of close.
Pillar also originated a Fannie Mae loan for Oakwood Estates MHC, a 3-star, all-age manufactured housing community built in 1965. Oakwood Estates MHC contains 210 sites that predominantly feature single- wide homes. The property was more than 80 percent occupied at time of close. Pillar sourced the two transactions through Yale Realty & Capital Advisors, a key Pillar Correspondent based in Miami, Florida.
“Fannie Mae and other capital sources are very
committed to financing manufactured housing community transactions and are expanding their offerings and credit criteria in order to win these loans. For example, both of these properties have more than 35 percent park-owned homes, which is higher than the typical Fannie Mae requirement. However, Fannie Mae approved this waiver, allowing the borrower to execute its strategy of filling sites with new homes for rental and future sales,” said Klingher.