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TMG arranged a loan for $2.1M purchase of a 51-pad mobile home park

Tags: Mobile Home Park Financing, MHP loans, Mobile Home Community Loans
Wednesday, Aug 25, 2021
by Barb

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.  

Location:  Arizona

Property:  52 pad mobile home park

Loan Amount: $1,470,000

Interest Rate:  4.5%

Term:  10 Years

Amortization:   30 Years

Prepayment:   3/2/1%

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