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TMG arranged $20.8MM Bridge Loan for the purchase of MHP Portfolio in Illinois

Tags: Bridge Loans, MHC Financing, MHP Portfolio loans
Friday, Apr 16, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source for Mobile Home Parks, just completed the $20.86MM  Bridge loan for the purchase of a portfolio of mobile home parks in Illinois.

The properties ranged widely in occupancy and the type of financing available.  The parks are in rural settings but a reasonable distance to large MSAs.    

The borrower’s goals were to the best possible financing with greatest proceeds and flexibility on the finance side.   Two of the parks qualified for CMBS and/or Agency financing, but the other parks did not.  TMG put together a variety of financing options to meet the buyer’s needs. The sponsors decided to move forward and close with a high leverage bridge loan that offered them options in the future and time to stabilize the underperforming park. 

Location:  Illinois

Property:  MHC Portfolio - 682 pads

Loan Amount: $ 20,860,000

Interest Rate:  4.75% (30-day LIBOR + 4.25%)

Term:   3 years plus a 1-year extension

Amortization:  Interest Only

Prepayment:   18 months minimum interest

LTV:  74.5%

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