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MHP Purchase Loan

Recently Closed Loan: $2.8 MM Purchase of a MHP in Arizona

Tags: nonrecourse loan, MHP financing, 1031 exchange, RV Park Financing
Monday, Apr 15, 2019
by Jeff Meierhofer

Summary:  The Madison Group (TMG), a leading national lending source of Mobile Home Park financing nationwide, arranged the $2,845,000  nonrecourse loan for the purchase of an MHP in Arizona.  The asset contained long term RV tenants, park models, and is in a tertiary market. The borrower was on the clock on a 1031 and needed nonrecourse financing to satisfy the needs of the investment group. The loan was finalized than 60 days and before the expiration of the 1031 exchange timeline.

The challenge to the transaction, in addition to the short timing, was the cash flow created by high expenses.  TMG worked with underwriting to work through the expense issue and secured a nonrecourse loan with the proceeds needed to satisfy  the needs of the investors.

Location: Arizona
Property: Mobile Home Community
Loan Amount: $2,845,000
Interest Rate: 4.98%
Term: 12-Year
Amortization: 30-Year
Prepayment:  Yield Maintenance
Recourse - None