The Madison Group (TMG), a leading
source of mobile home park financing
nationwide, arranged a $3.6M purchase money non-recourse loan for a portfolio
of parks in
Texas. The Borrower’s contacted TMG looking for a non-recourse loan to purchase
the parks prior to the expiration of the purchase agreement.
About the property and transaction:
consisted of three parks with a total of 182 existing pads and a 48-pad
expansion possibility. All the parks are located near each other in southern, Texas.
This was a value-add purchase, and each park had its own challenges that the
lender, Borrower, and TMG worked together to overcome.
the challenges of each park by arranging a loan with flexible terms, including
a 3-year interest only period. The 3-year I/O period will allow the clients to
address each park’s challenges and the reserves will allow them to increase
occupancy, remove any deferred maintenance, and make necessary improvements. The
clients are excited and ready to maximize each park’s potential.
Loan amount: $3,607,500
Term: 10 years
I/O – followed by 30-year amortization