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MHC financing for $1.7M loan on a Mobile Home Park in Tulsa, OK

Tuesday, Aug 11, 2015
by Jeff Meierhofer

Transaction Description:  The Madison Group (TMG), a commercial loan broker, has facilitated the financing of a Mobile Home Park.  The park was purchased less than a year ago and has 219 pads of which 106 are occupied and has great potential upside for our experienced investor.

The borrower purchased the property from a seller that was unable to produce historical income and expense data on the park.  It was a quick close and the investor purchased with an all cash transaction.  She was comfortable with the market and low occupancy, as she had previously turned around another park in the area and understood the market.

Challenges:  The out of state owner requested an all cash out refinance transaction on a park that had no historical data available, along with a less than 50% occupancy and needed some repairs and updating. She requested interest only for a period of time in order to make the needed repairs and still cash flow the property during stabilization.

Solutions:  TMG successfully closed the transaction at a low interest rate of 4.5% fixed for 3 years on a 7 year note with a 25 year amortization and one year of interest only payments.   All of the cash was disbursed to the borrower to use without holdbacks or escrows allowing her to use the cash to complete improvements on the property and purchase other properties for her portfolio.  

The financing was arranged by Angela Kesselman at The Madison Group.

The Madison Group (http://50.87.3.29/~madispl6/) 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 and Angela Kesselman can be reached at 435-659-2200 or by emailing Angela at angela@madisongroupfunding.com.