GMAC Commercial Mortgage Corporation Provides $94.7 Million in Financing for a Portfolio of Manufactured Home Communities in California and New Mexico.

BIRMINGHAM, Ala. -- GMAC Commercial Mortgage Corporation (GMACCM) has provided $94.7 million in fixed-rate financing for a portfolio of six manufactured home communities in California and New Mexico.

GMACCM Senior Vice President and Branch Manager Chad Hagwood, of the Birmingham loan origination office, arranged the transaction through Fannie Mae. Affiliates of Kort & Scott Financial Group received the funding.

Proceeds from this transaction were utilized to refinance existing debt on four of the communities--Hollydale Manufactured Home Community, Continental Manufactured Home Community, Riverside de Santa Fe and Knolls Manor and Knolls Lodge Manufactured Home Community--and to acquire Lincoln Center Manufactured Home Community. In addition, the borrower took advantage of Fannie Mae's supplemental loan program to place secondary debt on Cottonwood Manufactured Home Community, which enabled the borrower to cash out a portion of the equity it created since acquiring the property in mid-2003. The remaining proceeds were used to pay all transaction costs and return a portion of the borrower's equity in the properties.

"We were very pleased to work with the Kort & Scott Group again. They have proven to be excellent owners/operators of manufactured home communities," said Hagwood. "The impressive quality of these assets and their strong financial performance made it possible for us to structure very attractive deals for the borrower."

While there were prepayment penalties on the existing loans, refinancing made sound economic sense due to the very advantageous interest rates offered by GMACCM through Fannie Mae MHC DUS(TM) Flow program. Based on the borrower's analysis and request, GMACCM structured loans that provided maximum leverage with 30-year amortization schedules. Each of the loans features a nine-year, fixed-rate period followed by a one-year adjustable-rate mortgage. There is no prepayment penalty during the last year of the loan term, which provides the borrower with increased flexibility to refinance at the end of the loan terms.

"We will go out of our way to do business with GMACCM again," said Lee Kort, principal of Kort & Scott. "They not only offered a very fair deal on our debt placement, but also delivered the loan amounts and terms promised on time. We recommend GMACCM to anyone looking for commercial real estate financing. They exhibit integrity, expertise and are loyal to their client's best interest."

About the Properties

Hollydale Manufactured Home Community, located in Brea, Calif., is a four-star, all age community developed in 1965. The property is comprised of 134 single-, double- and triple-sectional homes and sits on approximately 22 acres of land. The community has maintained occupancy greater than 99 percent for the past three years.

Cottonwood Manufactured Home Community, located in Anaheim, Calif., is a four-star community consisting of 461 single- and double-sectional homes that sit on approximately 76 acres of land. The property is currently approximately 94 percent occupied.

Riverside de Santa Fe, located in Santa Fe, N.M., is comprised of 325 single- and double- sectional homes. This four-star manufactured home community sits on approximately 58 acres of land.

Knolls Manor and Knolls Lodge Manufactured Home Community, located in Torrance, Calif., is located on two parcels that total approximately 23 acres. This five-star community, comprised of 330 sites, is approximately 98 percent occupied with only five vacant sites remaining.

The Continental Manufactured Home Community, located in Santa Ana, Calif., sits on approximately 24 acres of land. Ninety-six percent of the land accommodates 257 multi-sectional homes. The four-star community is 100 percent occupied and has been for the past three years.

The five-star Lincoln Center Manufactured Home Community, located in Cypress, Calif., was developed in 1971. Resting on approximately 31 acres, the community is comprised of 305 sites, all of which can all accommodate multi-sectional homes. The property is 100 percent occupied and has been for the past three years.

About GMAC Commercial Mortgage Corporation

GMACCM, one of the nation's leading providers of debt capital for manufactured housing communities, closed more than $500 million in 2004 and was the nation's number one Manufactured home community lender for the Fannie Mae MHC DUS(TM) Flow program.

GMAC Commercial Mortgage Corporation (GMACCM), a wholly owned subsidiary of GMAC Commercial Holding Corp., is a premier financial services firm with extensive funding sources that, coupled with a broad menu of innovative financing programs, serve the needs of borrowers of commercial real estate debt as well as the providers of such capital. GMACCM is an industry leader in loan origination, servicing, asset management, investment management and technology services. The diverse lending and servicing specialist and its affiliates have more than 100 offices worldwide. GMACCM has a servicing portfolio of more than $253 billion and provides a variety of financing products and services including permanent, interim, mezzanine and construction lending as well as equity capital for commercial real estate. GMACCM has specialized lending units focused on healthcare, hospitality and construction lending.

News releases and other information about GMACCM, its products and services are available at www.gmaccm.com.

GMAC Commercial Mortgage Corporation (GMACCM) makes California loans pursuant to a California Department of Corporations California Finance Lender License. GMACCM brokers California loans to other lenders pursuant to its CA Dept. of Real Estate Broker License #0039810.