 Mobile Home Park Financing 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 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%
Non-recourse
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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 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 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%
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