The Madison Group (TMG), a leading source of Mobile Home Park financing nationwide, arranged the $1,900,000 cash out refinance for a mobile home park in Siler City, N.C. The Country Living Estates MHP consists of 147 pads on 53.6 acres. The borrower was interested in a longer amortization loan with a fixed rate of 7 to 10 years. The finalized terms of this loan were 4.23% interest rate, 10-year term, and a 30-year amortization.
The borrowers continuously upgraded this property during their 10 years of ownership. They sought to return capital infused into the park and cash out for continued updates to the mobile home park. Based on net operating income of approximately $250,000 and an 8 percent cap rate, the current value of the property is in excess of $3 million. The borrowers were able to utilize the new higher value to achieve their financial goals.
The property is located west of Raleigh and south of Greensboro at U.S. Highways 64 and 421. It consists of 147 mobile home pads of 10,000 square feet each, which all can accommodate double-wide homes. Most mobile home parks in the immediate area are single-wide parks. Currently the park is 100 percent occupied.
A nonrecourse loan was needed based on the underlying ownership of the property. Great care was taken by the lender and the borrower to provide proper documentation for the ownership by the revocable trust. When the park was purchased, many of the homes were rental units. Over the years, individuals who rented became owners of those mobile homes and title to the units had changed. It was necessary to change the title on individual units to finalize this transaction.
TMG’s processing staff worked diligently with the legal departments for the lender and the borrower, and was able to facilitate title changes with the Department of Motor Vehicles. This solved what seemed like an insurmountable hurdle with underwriting. By doing so, the borrower was able to achieve the desired cash out and a long-term nonrecourse loan with an excellent rate.
“Sometimes processing has to go the extra mile to make something work and to solve the really hard issues. It took a lot of patience from the borrower, lender and all parties involved. But in the end, the borrower is very pleased.” said Jeff Meierhofer, TMG’s Director of Finance.
The financing was arranged by Jeff Meierhofer at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded.
The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.