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Recent closed loan – $3MM Nonrecourse Loan for Purchase Mobile Home Parks

Thursday, Aug 06, 2015
by Jeff Meierhofer

The Madison Group Facilitates a $3MM Non-recourse Loan for the Purchase of Two Mobile Home Parks

Transaction Description:  The Madison Group (TMG), a commercial loan broker, has facilitated the financing for the purchase of on two older mobile home parks in a tertiary market. Both parks were fully leased and in good condition. The parks fit well into the owner’s current portfolio of real estate.

The borrowers decided to cross collateralize the parks via a non-recourse CMBS transaction to maximize the proceeds and procure a good long term interest rate. TMG was able to provide a funding source that gave them the proceeds that they required, along with the flexibility to carve out a piece of land for development after closing.

Challenges:  The borrowing group required a non-recourse lender that would provide a cross collateralize  the two smaller parks into one transaction.  The parks sit in different municipalities and had two different sellers, along with 1031 proceeds for the purchase, so timing was essential on the closing.  One of the parks had a retail component with below market leases, along with additional land that needed to be released after the closing.  The other park was in the middle of having the sewer systems replaced and required some flexibility for these repairs.

Solutions:
TMG successfully worked with two sellers on two sets of due diligence to close the transaction, locking a rate of 4.87% with a 10 year fixed term, 30 year amortization. The loan allowed for a set aside of funds for the sewer repairs and the release of the back parcel for future development and the buyers were able to achieve their goals with the additional land as a value add in the transaction.

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.