RV/Mobile Home Park Financing
The Madison
Group (TMG), a leading source of mobile home park and RV park financing
nationwide, arranged a $5,000,000 loan on a $7,200,000 purchase of an
RV/MHP community in the state of Washington. The buyer needed to secure
financing quickly to satisfy a 1031 exchange by year end. TMG provided a 3-year fixed rate bridge loan of 5.75%, interest only
for the full term.
The 81-pad
park is located in a suburb of Seattle, WA. The park is currently being
operated with a large percentage of long-term RVs on site. The buyer plans to
move the long-term RVs out and replace them with mobile homes. The buyer
currently owns multiple parks, is experienced in turn arounds, and has their
own management team that will manage the operations and capital improvements.
Given the short
timeline, the holiday season, and the transition of the property, TMG decided a
bridge loan with one of their trusted lenders would best serve the client. The trusted
lender was able to close the transaction in 32 days on a short-term interest
only loan.
Location:
Washington
Property:
81-pad park
Loan Amount:
$5MM
Interest
Rate: 5.75% 3-year fixed rate
Term: 3-years
– interest only
LTV: 69%
Timeframe: Closed
in 32 days
“We
were able to successfully satisfy the needs of the buyer and provide an
excellent loan that will enable them to execute their plan for this park” said
Angela Kesselman, TMG’s Associate Director of Finance.