The Madison Group (TMG), a leading
source of RV park financing
nationwide, arranged a $1.54M loan to purchase and expand an RV park in Oklahoma. The
repeat clients came to TMG requesting a higher leverage acquisition and
development loan with 12 months of I/O and a 30-year amortization.
The property consisted of 52 RV pads, 14 cabins, a bunkhouse, a lodge,
and an apartment. The sponsors wanted to acquire the park and expand it by
adding 30 RV pads with full hookups and 4 cabins. The park had several
amenities, city water, and a septic/lagoon. This was a value-add purchase that
needed a lender that could see the potential of the park and that could get
comfortable with the septic/lagoon.
TMG overcame the challenges of the park by working with a lender that
could see the sponsors’ vision. TMG worked with the lender to close a $1.54M
loan with a $350K advance for the expansion of the park. The loan included 12
months of interest only payments to allow the sponsors time to complete the
expansion project. The
clients were excited and ready to maximize the park’s potential.
Location: Oklahoma
Loan amount: $1,540,000
LTV/LTC: 70%
Term: 10 years
Rate: 7.34%
Amortization: 12-months
I/O – followed by 30-year amortization