The Madison Group (TMG), a leading
source of RV park financing
nationwide, arranged the financing
for the $9,750,000 purchase of an RV
park in Texas. The borrower, a repeat client
of TMG, was interested in a non-recourse loan. The finalized terms of this loan
were 5.6% interest rate, 10-year term, and a 25-year amortization.
This 4-star RV
park is in an excellent location with 210 spaces on 23.7 wooded acres. It has a stable income source from long-term recreational
vehicle tenants and has an occupancy rate of 85%. The park has common amenities including a
clubhouse, shuffleboard court, big screen TVs and exercise, laundry and storage
The borrowing entity for this transaction
was a group of 17 investors. This made it particularly challenging to get a
non-recourse loan. Because the borrowing entity needed to have
non-recourse to the LLC and not to the individuals, the loan was structured so
only three borrowers needed to sign the carve-out provision. This paved the way
for the borrowers to bring in additional capital through an investment group.
The down payment was derived from a small group of individuals and silent
do a good deal of mobile home park financing, and through our direct lenders we
were able to source the debt for this RV park,” said Jeff Meierhofer, TMG’s
director of Finance. “I would say it's an unusual day when an RV park gets a
non-recourse loan. We were happy to provide this for a repeat client.”
The financing was arranged by Jeff Meierhofer at The Madison Group.