The Madison Group (TMG), a leading national lending source of
mobile home parks, arranged the $5.6MM cash out refinance of a family park in
Kansas. The property was purchased by the client two years ago. It is in a growing area and has excellent
curb appeal.
The borrower’s goals were to refinance the higher rate first
mortgage and get a lower rate to increase cash flow. TMG was able to secure 3
years of interest only payments and cash out of the project to receive some
investment capital for use on other projects. This will increase the borrower’s
investment yield.
TMG worked with one of their agency lenders to secure the
borrower’s request. The expenses on this
park run lower than market, so we worked with the lender to underwrite it with
the lower in place expenses to maximize the dollars. The loan closed with a $5.6M loan fixed for
10 years, 30-year amortization, and 3 years of interest only. The borrowers
benefit from a cash out non-recourse long term loan.
Location: Kansas
Property: 175 pad Mobile
Home Park
Loan Amount: $5.6MM
Interest Rate: 4.25%
Term: 10 Years with 3
years of Interest Only
Amortization: 30 Years
Prepayment: Yield maintenance
Recourse: None