The Madison Group
(TMG), a national leader in manufactured housing community (MHC) financing, is
pleased to announce the successful closing of a $4.3 million cash-out refinance
for a two-property MHC portfolio located in Georgia and Alabama.
The portfolio,
consisting of communities with nearly 100% park-owned homes, required a
financing structure that would recognize both lot rent and park-owned home
income while accepting the homes as collateral. TMG collaborated with a trusted
lending partner to design a custom loan structure that met the client’s
objectives and delivered a 30-year amortization to maximize cash flow.
“This refinance
allowed our client to unlock significant equity while maintaining long-term
stability,” said Michael Estes, Commercial Real Estate Financing Advisor at The
Madison Group. “We’re proud to support experienced MHC operators with creative
and flexible financing solutions that advance their growth strategies.”
The borrower
intends to reinvest the loan proceeds into capital improvements and pursue
additional MHC acquisitions throughout the Southeast region.
Property: Mobile Home Park Portfolio
Location: Georgia and Alabama
LTV: 70% on real property
Loan Amount: $4,300,000
Term: 5 years
Amortization: 30 years
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The Madison Group (TMG), a
leading nationwide commercial real estate finance consulting firm, has
successfully arranged a $7.92 million refinance loan secured
by three well-located retail strip centers in New Jersey.
The client engaged TMG after
their previous mortgage broker retired and sought a trusted advisor to help
secure competitive financing and a cash-out component to fund a future
acquisition. Leveraging its extensive lender relationships, TMG structured a bank
swap loan that provided both the requested cash-out proceeds and an
attractive long-term financing solution.
The final loan structure
featured a 5.90% fixed interest rate, 65%
loan-to-value (LTV), and a five-year term with a 30-year
amortization. The borrower expressed strong satisfaction with the
outcome and the efficiency of TMG’s process in securing favorable terms within
a complex market environment.
Loan Highlights
·
Property Type: Retail Strip
Center
·
Loan Amount: $7,920,000
·
Interest Rate: 5.90%
·
LTV: 65%
·
Term: 5 Years
·
Amortization: 30 Years
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The Madison Group (TMG), a premier national brokerage
specializing RV Park financing arranged the $5,500,000 refinance of a 192 pad long
term RV park in FL. The transaction
marks the end of a challenging five-year journey for the borrower, who worked
tirelessly to secure permanent financing for the growing property.
The RV park, now a proven and sustainable
cash-flowing asset, initially faced difficulty attracting long-term capital due
to its historical operations under previous ownership. Over the past five
years, the borrower navigated a demanding landscape, relying on a series of
short-term and bridge financing solutions while methodically working to
stabilize occupancy, improve infrastructure, and demonstrate the park’s
long-term viability.
The loan structure provides the borrower
financial stability and flexibility to reinvest in the property and maximize
revenue.
Location: Florida
Property: Long Term
RV Park
Loan Amount: $5,500,000
Interest Rate: 7.00%
Term: 5 Years
Amortization: 30 Years
Prepayment: 3, 3, 2,
2, 1
LTV: 65%
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The Madison Group (TMG), a premier
national brokerage specializing RV Park financing arranged the $2,000,000
refinance of a 85 pad long term RV park near Lake Okeechobee, FL. The transaction marks a pivotal
milestone for the borrower, concluding a five-year effort to bring the property
from early-stage operations to a fully stabilized, cash-flowing asset.
When
the borrower first acquired the RV park, traditional lending options were
limited due to the property’s lack of operating history, how the park was
acquired, and the need for significant
operational improvements. Over the course of several years, the owner secured
short-term capital solutions while working relentlessly to improve occupancy,
strengthen financial performance, and establish long-term viability.
TMG worked
closely with the managing member of the properties to navigate a tough lending
environment that included the COVID pandemic, rising interest rates, a tough
Florida insurance market, lender saturation with the asset class, and loan
maturities to ultimately find the perfect lender to undertake the project. Working together, we forged a loan that all
were thrilled to be part of.
Location: Florida
Property: Long Term RV Park
Loan Amount: $2,000,000
Interest
Rate: 7.00%
Term: 5 Years
Amortization: 30 Years
Prepayment: 3, 3, 2, 2, 1
LTV: 65%
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The Madison Group
(TMG), a leading nationwide source for commercial real estate financing,
successfully arranged a $36,000,000 non-recourse loan to refinance a portfolio
of six five-star manufactured housing communities located across Alabama and
Georgia.
The portfolio
consists of approximately 850 homesites, with 80%+ operated as park-owned
homes. The sponsor manages the communities in a “horizontal apartment”
model—owning and leasing the majority of homes while maintaining the
high-quality standards expected of five-star properties.
The sponsor’s
objectives were to secure a cash-out refinance with non-recourse structure and
full-term interest-only payments. Through its extensive lender network, TMG
identified a capital partner willing to underwrite the loan based on lot rents
only, without imposing restrictive covenants on the sponsor’s home-ownership
operations.
Transaction
Highlights
- Property Type: Six Manufactured Housing
Communities
- Location: Alabama & Georgia
- Loan Amount: $36,000,000
- Term: 5 Years
- Amortization: Full-Term Interest Only
- Structure: Non-Recourse | Cash-Out
Refinance
The Madison Group
continues to be a trusted financing advisor for manufactured housing community
investors nationwide, providing access to CMBS, Fannie, Freddie, bank, credit
union, and private capital solutions.
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