Summary: The Madison Group (TMG), a leading national
lending source of Mobile Home Park financing nationwide, arranged the
$2,000,000 loan for a portfolio of 3 Manufactured Home Communities in TN.
The transaction was complicated by the necessity to use
cash from 2 existing properties to get cash out to purchase another asset. The
parks varied in quality and occupancy levels. The borrowers goals
were met by providing a portfolio loan of the three properties in one
TMG was able to source the funds needed to provide a timely
closing in advance of the PSA expiring. The value add parks will now be able to
be operated under one management team and increase occupancy and cash flow.
Extra effort was needed to sort through the seller’s P&L to provide enough
NOI for the loan size needed. The borrowers will reposition this 3 park asset
over a 2 to 3 year period and refinance with cash out into a new long term loan.
Property: Three Mobile Home Communities
Loan Amount: $2,000,000
Interest Rate: 6.89%