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$5MM Refinance of Three MHPs in Florida with high percentage of POH

Tags: Financing for MHP with Park Owned Homes, MHC Refinance, Cash out loans
Friday, Feb 19, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source for mobile home parks, arranged the $5,000,000 refinance of three parks located in Florida.

The three mobile home parks were previously damaged by a hurricane several years ago.  The owners had been able to rebuild the infrastructures and remove damaged homes.  They brought in a large number of new park owned homes (POH) and have leased them out. They are experienced operators and the parks have good cash flow.

The borrowers were referred to TMG by another repeat client.  Their goals were to refinance existing debt, including POH debt. They wanted some cash out to buy more homes and do some road work within the parks.

TMG was able to source a loan with a lender that was comfortable with the high percentage of POH and cash out.  The owners have their own construction crews and they wanted to monitor the funds themselves.  The loans were consolidated into one term loan and cash disbursed to the owners.  The loan will enable them to add more homes to empty pad sites and continue to increase their revenues on this loan term hold.

Location:  Florida  

Property:  Three mobile home parks totaling 151 pads

Loan Amount: $5,000,000

Interest Rate:  5.41%

Term:   5 years

Amortization:   30 years

Prepayment:   3/2/1%

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