Arc Debt Goes Into Restructuring
Hedge fund Farallon Capital Management is facing a restructuring of around $1.53 billion in debt it took on as part of its $1.8 billion leveraged buyout of Affordable Residential Communities, LLC. Included are around 260 mobile home parks in 23 states, with over 55,000 lots.
Although the loan has been sent to a special servicer, it is not currently in default.”The company made to request to implement certain amendments to the loan” said Jennifer Ludovice, an ARC spokesperson. “Due to the structural impediments inherent in CMBS debt, it was necessary for the loan to be transferred to special servicing to facilitate this process even though the loan is not in default.”
Frank & Dave’s Opinion of This Story:
Virtually everyone in the industry has been following the ARC story for over a decade. ARC came on the scene over a decade ago and rapidly bought their way up to 55,000 lots – often seemingly with abandon. Farallon took a huge risk taking over ARC, and this is the news story that will probably garner the most attention in the industry for the next several months.
Tags: mobile home investment, mobile home park and US Recession, mobile home park business, mobile home park business operations, mobile home park evaluation, mobile home park industry, mobile home park investing, Mobile Home Park Loans
mobile home park, mobile home park business operations, mobile home park investing, mobile home park selling | Frank Rolfe | 
July 1, 2010 11:38 am