Summary: The Madison
Group (TMG), a leading national source for RV Park financing, arranged the $2.357M
purchase financing for a 98-pad park in Texas.
The 55+ park is located on Lake Tawakoni, 50 miles outside
of Dallas and has a laundromat, pool, playground, lake access, along with a
bathhouse and store. The property is on
a long-term leasehold with the River Authority which made it a bit more
challenging to finance.
The borrowers relocated to Texas to buy and move to this
location as an owner occupied property.
It is the first park for them to own or operate, yet they had
operational life skills that would allow them to be successful in this type of
business. The financing had been denied
by several lenders due to their lack of experience, the location, land lease, and
also the loan to value.
TMG has a relationship with a SBA lender that could get
comfortable with the collateral and land lease to fund the transaction at 81%
leverage. The borrowers were able to buy
the park and still have some cash left to make some upgrades that will increase
their revenue moving forward. TMG was
also able to fund in time for the buyers to get the SBA waiver for no payments
for the first three months of operations.
Location: Texas
Property: 98 Site RV
Park
Loan Amount: $ 2.357M including a $21,000 operating capital
line
Interest Rate: 6% or
prime plus 2.75% adjusting quarterly
Term: 25 Years
Amortization: 25
Years
Prepayment: 5/3/1
LTV: 81%