The Madison Group (TMG), a
leading source of mobile home park financing nationwide, arranged the $1,155,000 loan for the purchase of a mobile home park in Heyburn, Idaho. The borrower’s goals were to purchase
the mobile home park with maximum leverage and longest amortization. TMG secured the financing with a 10-year
term, a 5-year fixed rate of 5.14% and a 25-year
amortization at 75% loan-to-value.
The 8.221-acre park consists
of 53 mobile home spaces with no park-owned homes. The park is in good condition has only one
vacancy at the present time. It is located in a relatively small market between
Twin Falls and Pocatello. Heyburn is
approximately 40 miles from Twin Falls, which currently has a positive job
growth rate.
One of the challenges for
this loan was that the borrower being a first-time mobile-home park owner, although
he has owned other multi-family properties for many years. The borrower also is an out-of-state buyer.
“We were able to find a local bank willing
to offer the 25-year amortization and 75% LTV in the small rural Idaho market,”
said Angela Kesselman, TMG’s Associate Director of Finance. “Most smaller banks only lend on 15-20 year
amortizations at lower LTVs. This lender
was comfortable with the collateral and made an exception to the policy providing the buyer the financing
he needed in order to cash flow the property and obtain his desired returns,”
said Kesselman.