UMH Properties Inc., a Freehold, N.J. real estate investment trust that owns manufactured housing communities, has received a new $15.5 million mortgage from Oritani Finance Co., a subsidiary of Oritani Bank. The loan is a refinance secured by five MH communities located in Pennsylvania.
The initial interest rate is 4.25% and will reset after five years to the rate the Federal Home Loan Bank of New York charges to its members plus 190 basis points.
It is scheduled to mature on Jan 1. 2022 and has a 30-year amortization schedule.
UMH used the proceeds from the loan to pay off the existing floating rate debt.
Samuel Landy, president of UMH said his company was looking forward to "a long and mutually beneficial relationship with Oritani Bank." A spokeswoman for UMH said this is the first year the REIT has been doing business with the Washington Township, N.J.-based bank, but the second loan it has received from them.
