Press Release (ePRNews.com) - PARK CITY, Utah - Apr 28, 2018 - The Madison Group (TMG), a leading source of mobile home park financing nationwide, arranged the $8,000,000 purchase of a mobile home community in Oklahoma. The parks income was largely derived from park owned units. TMG secured the financing with a 5-year fixed rate of 5.5% with a 7 year term and one year of interest only payments and a 25-year amortization at 77% loan-to-value.
The property, which is located in a nice residential area and has good access to the freeway, is fully occupied.The only current vacancies are empty lots. The mobile home park consists of 200 lots on 35 acres. The park owns 160 homes of which 34 are lease-to-own units. The borrower needed to accommodate an IRS 1031 tax-deferred exchange on another park that was sold in Tulsa. This purchase met the borrower’s goals.
Some challenges TMG faced in securing this finance package include the fact that parks with more than 35% of the homes owned by the park are more difficult to finance. This park also had declining income due to earlier poor management and increased collections. Additionally, the client lives out of state, but has been very successful in this market with another park.
The Madison Group was able to secure financing through a regional bank that was comfortable lending on the park and the operations as a whole. The borrower is very experienced with this property type and owns a large portfolio of parks.
“We were able to work with the right lender and third parties to get this loan closed within the 1031 timeline. We were also able to secure a high LTV loan for the client.” said Angela Kesselman, TMG’s associate director of Finance.
The financing was arranged by Angela Kesselman at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. 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. Source :
The Madison Group