Loans

CLEVELAND — Cleveland-based BWE has arranged $150 million in financing through a Freddie Mac transitional line of credit (TLOC) for a collection of over 2,500 manufactured housing community sites in the Midwest, Southeast and Rocky Mountain regions. MJ Vukovich, Ghazy Grijalva and Andrew Capra of BWE arranged the TLOC through Freddie Mac’s Optigo channel on behalf of a long-term client. The team also sourced a $14 million traditional bank loan for the borrower from a lender specializing in manufactured housing. The TLOC provides a convenient solution for manufactured housing communities that require more repairs and renovations before securing permanent financing terms or more flexibility in their hold period, according to BWE. By only initially using $100 million of the $150 million TLOC, the borrower has the ability to shape its portfolio more thoroughly by adding new properties in the future. BWE structured the TLOC as a floating-rate loan with interest-only payments for the full term. Additionally, the terms included interest rate caps to hedge against the risk of increasing rates, while also positioning the client to take advantage of a declining rate environment later this year and provide flexibility for asset exit.