The Madison Group (TMG), a leading national lending source of RV Park financing, arranged a $3,400,000 loan to purchase a new RV Park in Montana. The park consisted of 100 RV pads and 4 luxury cabins, with a club house, showers, and on-site laundry. The park had a mix of long-term and short-term stays.
The borrower’s goals were to purchase the RV Park and increase the marketing and advertising to drive up winter month occupancy and increase rates. They had completed this transition on 2 other luxury parks. The repeat client was an experienced operator and came to TMG looking for acquisition funds along with two years of interest only payments for stabilization. TMG was able to find a lender that was able to accommodate two years of interest only payments as well as include closing costs as part of the total loan to costs.
Property: RV Park
Location: Montana
Loan Amount: $3,400,000
Interest Rate: 5yr fixed rate of 6.81%
Term: 5 years with 2 years of interest only payments
Amortization: 25 years
Prepayment: None
Guarantee: Recourse