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The Madison Group secures the $12.25M refinance loan on an RV Resort in WY

Tags: RV Park Financing, RV park loans, Wyoming commercial loans
Thursday, Sep 09, 2021
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of RV Park financing secured the $12.25M refinance of on an RV Park near a national park in Wyoming.

The RV Park is a transient park located near the entrance to Teton National Park.  The client has owned and operated the project for years and is highly successful with this location.  The owner is looking to increase the number of pads for the site and add some new amenities.   The refinance includes the acquisition of an adjacent parcel which will be used for the expansion.

The borrower wanted to secure financing that would give him a low rate but also give him the opportunity to get some of his capital back out of the transaction.  TMG was able to structure financing that offered a long-term low rate and gave the buyer a significant amount of cash back at closing. 

Location:  Wyoming

Property:  RV Park

Loan Amount: $ 12,250,000

Interest Rate: 3.95 % fixed for 10 years

Term:   10 Years

Amortization:  25 Years

Prepayment:   5% declining

LTV:  65 %

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TMG arranged a loan for $2.1M purchase of a 51-pad mobile home park

Tags: Mobile Home Park Financing, MHP loans, Mobile Home Community Loans
Wednesday, Aug 25, 2021
by Barb

Summary:  The Madison Group (TMG), a leading national lending source of Mobile Home Park financing arranged a loan for $2.1M purchase of a 51-pad mobile home park located just outside of Tucson, AZ.  The loan closed at a 70% LTV and a 30-year amortization. 

The borrowers’ goals were to purchase the park with the highest leverage available and the best available rate for this asset.  The property is located in a corridor just outside of Tucson.  There are dirt alleyways and one home sits on a dirt road, which was a challenge for some lenders.  In addition, the property has a septic system and well water.  The borrowers reside out of state. 

TMG sought out a lender that could get comfortable with the park at 70% leverage.  We were able to close the loan on time with a national MHP lender who specializes in park financing.   TMG also negotiated 1 year of interest only payments on the loan which gives the buyers some extra cash flow to do some minor improvements over the next year.  

Location:  Arizona

Property:  52 pad mobile home park

Loan Amount: $1,470,000

Interest Rate:  4.5%

Term:  10 Years

Amortization:   30 Years

Prepayment:   3/2/1%

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RV Park Financing

The Madison Group arranged the $2.357M purchase financing for a RV Park in Texas

Tags: RV Park financing, RV Park loans, commercial loans, SBA loans for RV Parks
Tuesday, Aug 24, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national source for RV Park financing, arranged the $2.357M purchase financing for a 98-pad park in Texas.

The 55+ park is located on Lake Tawakoni, 50 miles outside of Dallas and has a laundromat, pool, playground, lake access, along with a bathhouse and store.  The property is on a long-term leasehold with the River Authority which made it a bit more challenging to finance.

The borrowers relocated to Texas to buy and move to this location as an owner occupied property.  It is the first park for them to own or operate, yet they had operational life skills that would allow them to be successful in this type of business.   The financing had been denied by several lenders due to their lack of experience, the location, land lease, and also the loan to value. 

TMG has a relationship with a SBA lender that could get comfortable with the collateral and land lease to fund the transaction at 81% leverage.  The borrowers were able to buy the park and still have some cash left to make some upgrades that will increase their revenue moving forward.   TMG was also able to fund in time for the buyers to get the SBA waiver for no payments for the first three months of operations. 

Location:  Texas

Property:  98 Site RV Park            

Loan Amount: $ 2.357M including a $21,000 operating capital line

Interest Rate:  6% or prime plus 2.75% adjusting quarterly

Term:   25 Years

Amortization:  25 Years

Prepayment:   5/3/1                             

LTV:   81%

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Multifamily Portfolio Financing

The Madison Group arranged the $7.5MM refinance for a SFR portfolio in Texas

Tags: multifamily portfolio financing, Multifamily loans, Texas nonrecourse loans, Cashout loans for multifamily properties
Wednesday, Aug 11, 2021
by Paul Kuster

Summary:  The Madison Group (TMG), a leading national lending source of SFR Portfolio financing, arranged the $7,553,000 refinance for a 48-property portfolio in north Texas.  The final terms were a 5-year term, interest only, with a rate of 4.07%.  The loan is non-recourse and the borrower received cash out from the transaction.

The 48-property portfolio consists of 25 SFRs and 23 duplexes located in the Fort Worth TX residential market.

The borrower’s goals were to refinance out of its existing recourse-debt into non-recourse debt at a lower interest-only rate which increased monthly cash flow from the portfolio. They also wanted to take cash out to invest in other commercial real estate opportunities.

TMG was able to help the borrower meet its goals by offering several financing solutions that allowed the borrower to select the optimal financing solution that met the timing of the borrower’s priorities and objectives.

Location:  Texas

Property:  48 Unit Single Family Residences and Duplexes

Loan Amount: $7,553,000

Interest Rate:  4.07%

Term:   5 Years

Amortization:   Interest only for 5 years

Prepayment:   Yield Maintenance

LTV:   63%

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Multifamily Financing

The Madison Group arranged the $9,8MM construction loan for 72 unit apartment

Tags: Apartment construction loan, Multifamily financing, Construction Financing, 85% LTC
Wednesday, Jul 28, 2021
by Barb

The Madison Group (TMG), a leading national lending source for multi-family construction, arranged the $9,800,000 construction loan for a new 72 unit property in Idaho.

The borrower reached out to The Madison Group with a singular goal in mind, achieve a higher Loan to Cost construction loan than his long-time established lender was willing to give.  Our client requested an 85% LTC construction loan and The Madison Group delivered with a lender that provided proceeds at approximately 84% LTC at a rate of 5.00%.  Once quoted, the client, lender, and the Madison Group worked together to get final approval, third party reports, and closing in a time frame that allowed the client to continue progress on the project uninterrupted.  

Location:  Idaho

Property:  72 Unit Multi-Family Construction

Loan Amount: $9,800,000

Interest Rate:  5.00%

Term:   20 months

Amortization:  N/A

Prepayment:   None

LTV:   84%