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The Madison Group (TMG), a nationwide commercial real estate financing firm, arranged a $2,000,000 cash-out refinance for an 89-pad mobile home parkin Arizona. The financing allowed the sponsors to refinance their upcoming loan maturity, access equity, and maintain flexibility for future financing needs.
The property includes 70 tenant-owned homes, five park-owned models, and 14 vacant pads available for infill with park-owned or tenant-owned homes. The vacant pads provide an opportunity to increase occupancy and rental income as additional homes are placed in the community.
With their existing loan scheduled to mature in November 2026, the sponsors engaged TMG to conduct a competitive lender bidding process. Their priorities included competitive pricing, cash-out proceeds, and the ability to pursue additional financing with the same lender as their investment strategy evolves.
TMG secured a loan with a 6.125% interest rate, a 10-year term, and a 30-year amortization schedule. The lender provided a 90-day interest rate lock, protecting the borrowers from rising rates during underwriting and closing.
The loan also carries no prepayment penalty, preserving flexibility to refinance in the future. The borrowers may also pursue supplemental financing through a second lien with the same lender, subject to satisfactory underwriting and lender approval.
· Property type: Mobile Home and RV Park
· Location: Arizona
· Community size: 89 pads
· Loan amount: $2,000,000
· Loan purpose: Cash-Out Refinance
· Interest rate: 6.125%
· Loan term: 10 years
· Amortization: 30 years
· Interest rate lock: 90 days
· Prepayment penalty: None
Partner with The Madison Group to secure the best financing for your investment.
