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RV Park Financing

TMG Arranged the $1,9MM Bridge Loan for a RV Park in Florida

Tags: RV Park Financing, RV Park loans, Bridge Loans, Multifamily Financing
Tuesday, Jun 01, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for recreational vehicle (RV) parks, arranged the $1,900,000 Bridge Loan for an 147 pad, 21 acre RV Park in South Florida. 

The borrower was seeking a quick refinance of existing seller carry back debt to allow them to free up funds to capitalize on the purchase another portfolio of RV parks in the region.  The primary need for the loan was it had to close quickly.  The Madison Group matched the borrower’s time and need with a lender that was able to perform on a short term bridge basis to accomplish the goals of the project.  TMG with its processing and closing department assisted the borrower and the lender in gathering all information necessary, completing 3rd party reports, and negotiating a deal that was a win for all parties. 

Location:  Florida

Property:  147 pad RV Park

Loan Amount: $1,900,000

Interest Rate:  12%

Term:   1 Year with two 6 month extension options

Amortization:   Interest Only

Prepayment: None 

LTV:   54%

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TMG Arranged the $1.2MM Cash Out Refinance for a MHP in Minnesota

Tags: Mobile Home Park financing, MHP cashout loans, MHC commercial loans, Mobile Home Park refinance
Friday, May 14, 2021
by Jared Shupe

The Madison Group (TMG), a leading national lending source for mobile home park financing arranged the $1,200,000 refinance and cash out loan for a 42-pad mobile home park in Minnesota. 

The park was purchased by our client in 2016 with private financing.  After completing significant renovations and upgrading the park with personal cash, the borrower wanted to re-leverage the park with some cash out to replenish personal cash reserves.  The Madison Group was able to secure the right financing tailored to the cash flow and other dynamics of the park operations. 

Location:  Minnesota

Property:  Mobile Home Park – 42 Pad,  6 acre Park

Loan Amount: $1,200,000

Interest Rate:  5.31%

Term:   5 Years

Amortization:   30 Years

Prepayment:   3,2,1,1,1

LTV:   75%

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$6.2M refinance of a portfolio of NNN properties in Texas

Tags: NNN Financing, Nonrecourse loans, Portfolio Loans
Wednesday, Apr 28, 2021
by Angela Kesselman
The Madison Group (TMG), a leading national source for NNN property financing, arranged the $6.2M non-recourse refinance of a portfolio of Comerica Bank branches and a KFC.  The client that had a CMBS loan coming due.  TMG was able to secure financing with a 30-year amortization at 3.75% on a 5-year fixed rate loan.  The client also has the option to fix for an additional 5 years once the lease options had been signed.

The properties are located throughout the Texas metroplexes.  Most of the properties have a 5-year remaining lease term.  CMBS financing had been put in place 5 years ago, as the real estate investment group had planned on a shorter hold time. 

The sponsors came to The Madison Group requesting a non-recourse rate and term refinance loan.  They wanted a longer amortization to increase cash flow and the best available rate.  Due to the short nature of the remaining leases, and the uncertainty in the market towards bank branches, many lenders were not viable options for this refinance.

TMG sent the financing package to several of their trusted lenders.  Along with excellent rate and terms, TMG also negotiated 3 years of interest only for the sponsors, along with the ability to transport the debt to a new property, if any were sold during the loan term.   The cost of the loan was significantly less than CMBS debt and closed as quoted with a nice permanent loan in place.

Location:  Texas

Property:    Bank locations along with a KFC

Loan Amount: $ 6,200,000

Interest Rate:  3.75%

Term:  10 Years

Amortization:   30 Years

Prepayment:   3/2/1 or ability to transfer debt to another property

LTV:  60 %

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TMG arranged the $1,300,000 cash out refinance of a MHC in Texas

Tags: Mobile Home Park Financing, Cash out loans, Nonrecourse loans for MHC
Friday, Apr 23, 2021
by Paul Kuster

The Madison Group (TMG), a leading national lending source for MHP/MHC financing, arranged the $1,300,000 refinance for a 45-unit MHC in Texas.  The final terms were a 10-Year fixed term, 30-year amortization, with a rate of 4.08%.  The loan is nonrecourse and the borrower received cash out from the transaction.

The 45-unit MHC is well located adjacent to a planned SFR residential community with public schools, retail shopping, access to major transportation corridors, close to major employers, and twenty minutes from downtown Houston.

The borrower’s goals were to refinance out of two existing high-rate loans which were cross collateralized by the subject MHC in Houston and another MHC located three hours away in a small town in Texas.  The financing provided cash out to the borrower, placed new debt on the Houston MHC, and eliminated the debt on the MHC which was located outside of Houston.

Because the borrowers were out of state owners and operate a business full time in their state of primary residence, TMG was able to work with the borrowers at mutually convenient times to process and close the loan in a reasonable time frame.

Location:  Texas

Property:  45 Residential Mobile Home Units

Loan Amount:  $1,300,000

Interest Rate:  4.08%

Term:  10 Years

Amortization:  30 Years

Prepayment:  Yield Maintenance

LTV:  65%
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TMG arranged $26.5MM Bridge Loan for the purchase of MHP Portfolio in Illinois

Tags: Bridge Loans, MHC Financing, MHP Portfolio loans
Friday, Apr 16, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source for Mobile Home Parks, just completed the $26,500,000 Bridge loan for the purchase of a portfolio of mobile home parks in Illinois.

The properties ranged widely in occupancy and the type of financing available.  The parks are in rural settings but a reasonable distance to large MSAs.    

The borrower’s goals were to the best possible financing with greatest proceeds and flexibility on the finance side.   Two of the parks qualified for CMBS and/or Agency financing, but the other parks did not.  TMG put together a variety of financing options to meet the buyer’s needs. The sponsors decided to move forward and close with a high leverage bridge loan that offered them options in the future and time to stabilize the underperforming park. 

Location:  Illinois

Property:  MHC Portfolio - 682 pads

Loan Amount: $ 26,500,000

Interest Rate:  4.75% (30-day LIBOR + 4.25%)

Term:   3 years plus a 1-year extension

Amortization:  Interest Only

Prepayment:   18 months minimum interest

LTV:  74.5%

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