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Mobile Home Park Financing

The Madison Group arranged the $8MM nonrecourse cash out refinance for MHP in California

Tags: Nonrecourse Cashout Loan, MHP Financing, MHC Loans, Interest Only loans
Monday, Jun 28, 2021
by Paul Kuster

Summary:  The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $8MM refinance for a 105-unit in California.  The final terms were a 7-year term, interest only, with a rate of 3.07%.  The loan is non-recourse and the borrower received cash out from the transaction.

The 105-unit MHC is well located in Silicon Valley close to office, retail shopping, residential, public schools, major employers, and access to major transportation corridors.   

The borrower’s goals were to refinance out of its existing recourse-debt into non-recourse debt at a lower interest rate, take cash out to invest in major improvements to its mobile home community, and to invest in other commercial real estate opportunities on a predetermined schedule.

TMG was able to help the borrower meet their goals by offering several financing solutions and loan options that allowed the borrower to select the optimal financing solution that met the timing of the borrower’s priorities and objectives.


Location:  California

Property:  Mobile Home Park

Loan Amount: $8,133,000

Interest Rate:  3.07%

Term:   7 Years

Amortization:   Interest only for 7 years

Prepayment:   Yield Maintenance

LTV:   55%

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