Summary: The Madison
Group (TMG), a leading national lending source of Mobile Home Park financing
arranged a loan for $2.1M purchase of a 51-pad mobile home park located just
outside of Tucson, AZ. The loan closed
at a 70% LTV and a 30-year amortization.
The borrowers’ goals were to purchase the park with the
highest leverage available and the best available rate for this asset. The property is located in a corridor just
outside of Tucson. There are dirt
alleyways and one home sits on a dirt road, which was a challenge for some
lenders. In addition, the property has a
septic system and well water. The
borrowers reside out of state.
TMG sought out a lender that could get comfortable with the
park at 70% leverage. We were able to
close the loan on time with a national MHP lender who specializes in park
financing. TMG also negotiated 1 year
of interest only payments on the loan which gives the buyers some extra cash
flow to do some minor improvements over the next year.
Property: 52 pad
mobile home park
Loan Amount: $1,470,000
Interest Rate: 4.5%
Term: 10 Years
Amortization: 30 Years