The Madison Group (TMG), a leading source of mobile home and RV park financing nationwide, arranged the $910,000 refinance of a vintage RV Park in Borrego Springs, CA. The client purchased the park one year ago and wanted to restructure the loan from a quarterly adjustable loan into a longer fixed-rate term. TMG secured the financing with a 15-year fixed term with a rate of 4.90% and a 30-year amortization at 65% LTV. The loan has no prepayment penalty.
This unique 77-pad park has an eclectic mix of vintage RVs and is always fully occupied and has a long waiting list. The tenant mix is 50% weekenders, 40% snowbirds, and 10% full-time residents. Most of the leases are month to month. Borrego Springs is a small market with a population of 3500 residents.
TMG overcame several challenges to find a lender that was willing to finance an RV Park in a rural community. The occupancy is not typical for an RV park, and there are a small number of full-time tenants. The property performs more like a mobile home park for snowbirds than an actual RV park, which affects the type of financing available in the marketplace.
“We sourced a lender that liked the property and the operator. They offered him the opportunity to refinance his debt into a longer term fixed note on a 30-year amortization. The increased cash flow from the lower rate and longer amortization will help with the owner’s ability to purchase another park next year. He no longer has his properties tied up with cross collateralization, which gives him more financial freedom” said Angela Kesselman, Associate Director of Finance.
The client commented: “I purchased an RV park just over a year ago and I had a terrible SBA loan that required liens on other properties and businesses. I'm not sure how I came across The Madison Group, but from the time I spoke with Angela on the phone, the process was seamless. Once Angela knew the loan would go through, she handed me over to her loan coordinator, Brandi. Now let me tell you, I've purchased or refinanced over 10 properties in the last 10 years and I've NEVER dealt with a loan coordinator with so much common sense and amazing communication. I plan on buying another RV park this year and hopefully the Madison Group can help me again. I would definitively recommend them to anyone looking for funding.”
The financing was arranged by Angela Kesselman at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded. The Madison Group can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.