Skip to Main Content
Mobile Home Park Home Owners Allegiance

On Tue, Apr 3, 2018, Capital One (Chad Thomas Hagwood) provided Kort & Scott Financial Group with a $48.8 million Fannie Mae structured adjustable-rate loan for Lincoln Center Mobile Home Park, a 305 unit manufactured housing community in Cypress, California.

According to the Orange County Tax Assessor, the property (land including common areas) was assessed at $23,308,579 as of Jan 1, 2017. Residents questioned how KSFG were able to obtain refinancing for more than double the value of the land. This is due to the Lease Receivables.

The signing of these long-term leases aids in the refinancing of a parks debt, as a major component of an appraisal of the parks value is based on its rental income potential over time. These long-term leases lock in guaranteed annual rental increases at a minimum of 6-8% for the leased spaces.

Using basic calculations, we can roughly estimate what a long-term lease may be worth (average) in Lincoln Center Mobile Home Park. We'll use a 90% occupancy rate and divide the numbers by 275 spaces.

(+) Loan Amount: $48,800,000.00
(-) Assessed Value: $23,308,579.00
(=) Difference: $25,491,421.00
(÷) Occupied Spaces: 275
(=) Per Lease: $92,696.00

Tue, Apr 3, 2018 – Capital One has provided the Kort and Scott Financial Group with a $48.8 million Fannie Mae structured adjustable-rate loan for Lincoln Center Mobile Home Park, a 305-unit manufactured housing community in Cypress, California.

‘Thanks to our close working relationship with Kort & Scott and Fannie Mae, we were able to structure and close an exact fit for the borrower’s needs’, Chad Thomas Hagwood, Capital One Multifamily Finance’s senior vice president of its Southeast region, said. ‘The sponsor is using the proceeds to pay off their existing loan and secure funds to further enhance this already great community.’

The development was 92 percent occupied at the time of the loan.

The Kort and Scott Financial Group is currently the 13th-largest owner/operators of MHCs in the U.S., with 38 communities in its portfolio, representing 8,600 MHC sites in California, Colorado and Arizona.


Mobile Home Park Refinanced

1. Leases 2. Sample 3. Incentives 4. Unconscionable 5. Forbearance 6. Addendums

Sierra Corporate Management have a minimum 6% annual compounding increase built into the 25-year lease. The tenants are liable for most of the park's operating costs and operational risks. This does not appear to be a residential lease. This appears to be a modified commercial triple net (NNN) lease that is egregiously one-sided in favor of the landlord. Don't sign this!


Sierra Corporate Management mobile home owners should never sign a lease like this. From a legal perspective, this 21 page (19,758 words) lease appears to be riddled with overly harsh, unduly oppressive and unreasonably favorable terms for the MHP owners. It appears to be one-sided and what I would argue is an Unconscionable Contract.


The signing of these long-term leases aids in the refinancing of a parks debt, as a major component of an appraisal of the parks value is based on its rental income potential over time. These long-term leases lock in guaranteed annual rental increases at a minimum of 6-8% for the leased spaces.