PMC Assists TAG
PRESS RELEASE
For Immediate Release
Issued by: PMC Financial Services
Pioneer Pines Mobilehome Park Purchased For Rehabilitation and Upgrading
Hillsborough, CA – The Associates Group for Affordable Housing, Inc. (TAG), San Clemente, CA announced the purchase in November 2002 of Pioneer Pines Mobilehome Park, 6601 Eucalyptus Drive, Bakersfield, CA, for $5.75 million. TAG, formed in 1988, is a Caliornia non-profit corporation providing persons and families of low and moderate income with affordable housing. TAG was granted a 501(c)(3) exemption by the Internal Revenue Service and has as its current purpose the acquisition, rehabilitation, operation and ownership of manufactured home parks.
Pioneer Pines was originally constructed as a 352-site park during the 1970s. The project has a clubhouse with an office, social room with kitchen, and two multipurpose rooms, a pool with spa, and a 35 space RV storage area. The park is currently 65% occupied and an extensive program of rehabilitation and upgrades is planned. After completion of the rehab program, the project will consist of 337 mobilehome spaces.
The rehab program, budgeted at $1.75 million, includes renovation of the existing buildings, repaving the RV storage area, replacing the existing perimeter walls and fences with new walls and a prefabricated sound wall to minimize railroad noise, repairing of the sewer, water and electrical services, replacing of the curbs, gutters and sidewalks as neded, installation of street lighting, landscaping throughout the park, and the addition of new electric security gates to both enterances. Fifteen mobilehome spaces will be removed and landscaped to reduce crowding and avoid flood plane issues. The remodeled clubhouse will house two kitchens, a billiards room, a gym, two saunas and four restrooms. Children’s play areas will also be renovated.
The financing for the project was provided by Red Mortgage Capital, Inc., Columbus, Ohio using the FHA Mobilehome Park Financing Program. The FHA mortgage insurance provided “AAA” credit enhancement for the issuing of $7.83 million in Multifamily Housing Revenue Bonds by the Kern County Housing Authority. The bonds were underwritten by Red Capital Markets, Inc. Use of this program resulted in a 40-year, fixed rate, fully amortizing financing.
PMC Financial Service, Hillsborough, CA acted as advisor to TAG and Red Mortgage Capital. Contact Deane Sargent for additional information.
PMC FINANCIAL SERVICES
2365 Skyfarm Drive
Hillsborough, CA 94010
(650) 375-8043
(650) 375-8132 fax
http://www.pmcfinancialservices.com/
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