The Madison Group (TMG), a leading national lending source of mobile
home park financing, arranged a $1,800,000 acquisition bridge loan to purchase
a 391-pad distressed mobile home park in Michigan.
The borrower’s goals were to obtain an acquisition loan to
purchase a mobile home park that was in a distressed and mismanaged condition with
low occupancy. Despite the mismanagement, this park had significant upside. The
sponsors have approximately $1MM in immediate improvements and plan on creating
a better lifestyle for the current and future tenants.
The sponsors contacted TMG and needed to close quickly. TMG worked
with a lender that was able to provide a bridge loan in a timely manner.
Although there were some hurtles, the loan was closed, and the client was happy
with the loan terms they received. Once the park improvements are completed,
the park will be a great mobile home park to live in. TMG looks forward to
working with the Client to refinance the park in the next 24 months.
Property: MHP
Location: Michigan
LTV: 45%
Loan Amount: $1,800,000
Term: 2-year + 1 year
extension
Rate: 10.5%
Prepayment Penalty: None