Mobile Home Park Financing
The Madison
Group (TMG), a leading national lending source of MHP/MHC financing, arranged
the $3,069,000 refinance for a portfolio of four MHP/MHC communities. The final
terms were a 10-year fixed term with 6 years of interest only. The loan is
amortized for 30-years, is nonrecourse, with a rate of 3.12%. The borrowing entity received $1.7MM in cash out.
The borrower’s goals were met by consolidating the 4 parks
together and getting equity for other real estate investments. They had taken
under performing assets and put time and effort into the parks to increase the
value. As the assets had appreciated, the timing was excellent to get cash out
and receive terms that greatly benefited the borrowers.
TMG worked diligently with underwriting to get through the
issues of scattered sites and income and expenses from four different parks. Great
care was taken to get maximum proceeds by working through the income and adding
back nonrecurring expenses for the varied parks.
“Having borrowers that take pride of ownership and can
provide the necessary documents made this possible. Our processing staff worked
with all parties involved. It took extra time, but the borrowers were pleased
with the outcome.” Jeff Meierhofer, TMG Director of Finance
Location: South Carolina
Property: Four
Separate Manufactured Home Communities
Loan Amount: $3,069,000
Interest Rate: 3.12%
Term: 10 Years.
Years 1-6 are interest only
Amortization: 30 Years
Recourse: None
Prepayment: Yield
Maintenance
LTV: 55%