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Mobile Home Park Financing

Recent Closing with rate of 2.99% on a $4MM Refinance for MHP in South Carolina

Wednesday, Sep 16, 2020
by Barb

The Madison Group (TMG), a leading national lending source of Mobile Home Park financing, arranged the $4,000,000 refinance for a 4 MHP portfolio. The 4 separate parks are individual parcels but within 3 miles apart of one another and total 205 pads. The parks are well maintained and offer a safe and friendly environment for the tenants. One central office will manage the portfolio.

The processing and underwriting for the varied income and occupancies required attention to detail by underwriting and the team at TMG. The operating entity included four key principals which required focus on managing the financials and personal information.

The borrower’s goals were met by providing a loan covering the 4 assets, thereby allowing for $1,000,000 of cash out to purchase other properties and increase the overall cash flow.

“The borrowers and TMG worked in conjunction to present a package that met the lenders parameters. It was truly a team effort and required attention to detail by all involved. The borrowers can now take a few well-deserved days off knowing they achieved terms that at first did not seem possible, but in the end were achieved” said Jeff Meierhofer, TMG’s Director of Finance.

Financing Summary:

Location:  South Carolina
Property:  Mobile Home Park Portfolio
Loan Amount: $4,000,000
Interest Rate:  2.99%
Term:   10 Years – Interest Only
Amortization:   30 Years
Nonrecourse: Yes  
LTV:   55%

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Self Storage Financing

Recent Closed Loan: $2,800,000 non-recourse for a self-storage facility in Utah

Monday, Sep 14, 2020
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source of Self Storage financing, arranged the $2,800,000 purchase non-recourse financing for a 379 unit self-storage facility in Utah.  The borrower had additional 1031 funds to deploy and was seeking the best loan terms possible with an efficient lender.

Having recently come through a particularly difficult transaction with another broker and lender, the borrower’s goals were to facilitate a loan process with a lender that would not only provide great rates and terms but could approve, and close the loan in a cost efficient and timely manner.  TMG was able to quickly find a lender with excellent terms with the help of TMG origination and processing staff.   The borrower was able to close on time in what proved to be a well-organized, professional process by all parties. 

Location:  Utah

Property:  379 Unit Self Storage Facility

Loan Amount: $ 2,800,000

Interest Rate: 3.35%

Term:   10 Years

Amortization:   30 Years

Prepayment:  5,5,4,4,3,3,2,2,1,1

LTV:   53%


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Successful MHP loan closing - $1,350,000 nonrecourse refi for a park in Oregon

Tags: mobile home park financing, MHC loans, MHP loans, nonrecourse loans
Tuesday, Aug 18, 2020
by Paul Kuster

The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $1,350,000 refinance for a 50-unit MHP in Oregon.  The final terms were a 12-year fixed term, 30-year amortization, with a rate of 3.38%.  The loan is nonrecourse and the borrower received cash out from the transaction.

The borrower’s goals were to refinance the existing debt with a new nonrecourse loan and take cash out for reserves and other business uses. Because the borrower operates a business full time during the day, TMG was able to work with the borrower in the evenings and on the weekends to process and close the loan in a reasonable time frame.

Location:  Oregon
Property:  Mobile Home Park
Loan Amount: $1,350,000
Interest Rate:  3.38%
Term:   12 Years
Amortization:  30 Years
Prepayment:   Yield Maintenance
LTV:   65%

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Self Storage financing

Successful Closed Loan: $2,400,000 cash out refinance for a 360-unit self-storage facility

Tags: self storage financing, cash out loans, commercial real estate loans
Tuesday, Aug 04, 2020
by Jared Shupe

The Madison Group (TMG), a leading national lending source of self-storage financing arranged the $2,400,000 cash out refinance for a 360-unit self-storage facility with adjoining retail and executive office strip space.   

Owning a property with excellent equity, the borrower was in the market for the absolute best rates and terms the market could offer.  Loan application and approval process efficiency were also particularly important to the borrower.  The Madison Group quickly turned multiple offers back to the borrower, including recourse and nonrecourse options, and a mix of various rates and terms.  The borrower had enlisted multiple sources to find appropriate financing for the subject and ultimately the offer presented by The Madison Group won out against the multiple other offers received from other sources.

The loan approval, documentation and closing process went very smoothly as a result of experienced lenders and oversight from The Madison Group’s closing department.

Location:  Georgia

Property:  Storage Facility and Executive Office and Retail

Loan Amount: $2,400,000

Interest Rate:  3.33%

Term:   10 Years

Amortization:  30 Years

Prepayment:  Yield Maintenance

LTV:   ~25%

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Mobile Home Park Financing

TMG facilitated a $3MM cashout refinance for a MHP portfolio in South Carolina

Tags: MHC Financing, MHP Loans, Cashout Loans for Mobile Home Parks over $1MM, Nonrecourse Loans
Thursday, Jul 09, 2020
by Jeff Meierhofer

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%