The Madison Group closes a $3.5M loan for the purchase of a RV Resort in Florida

Transaction Description: The Madison Group, a commercial loan consultant and broker, has provided the financing for the purchase of this well maintained Lakefront RV Resort. The park consists of 220 sites nightly and seasonal RV pads, with 26 long-term rental units. The resort was completely renovated approximately 15 years ago with all new infrastructures to include septic systems and city water lines. Amenities include a pool, laundry facility, playground, mini golf, general store, and restaurant. The Park is located on 16.5 acres with boat docks and ramps and the best bass fishing in the area.

Challenges: The varying income for the park made it difficult for traditional commercial real estate financing and impossible for an SBA loan. Also the park was located in a rural area and had a great deal of income from snowbirds. The park had suffered some lower income 3 years ago from an issue with the lake on the property which is the center point of their property. The new buyers, investment team, felt it had a great deal of upside to the park and is looking for a higher LTV loan to limit their investment in the property.

Solutions: The Madison group was able to source a lender that would provide financing on the rural park. A great deal of effort was spent reviewing the income for the park and analyzing how the future income would facilitate sufficient cash flow to service the debt. The borrowers were able to get a loan for $3,570,000, 75% LTV, with a rate of 5.5% fixed for 5 years. The loan adjusts after year five but is a fully amortizing loan for 30 years. This allows the investment group to review financing in year six but reduces their refinance risk.

The financing was arranged by Jeff Meierhofer at The Madison Group.

The Madison Group (www.madisongroupfunding.com) 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 Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.

The Madison Group Arranges $910,000 Refinance Loan for a Mobile Home Park in CA

The Madison Group (TMG), a leading source of mobile home and RV park financing nationwide, arranged the $910,000 refinance of a Vintage RV Park in Borrego Springs CA. The client purchased the park one year ago, and wanted to restructure the loan from a quarterly adjustable into a longer fixed rate term. TMG secured the financing with a 15 year fixed term with a rate of 4.90% and a 30 year amortization at 65% LTV. The loan has no prepayment penalty.

This unique 77 pad RV park has an eclectic mix of vintage RVs is always fully occupied by tenants and has a long waiting list. The tenant mixe is 50% weekenders, 40% snowbirds, and 10% full time residents. Most of the leases are month to month. Borrego Springs is a small market with a population of 3500 residents.

TMG overcame several challenge of finding a lender that was willing to finance an RV Park in a rural community. The tenants are not typical for an RV park with very few full time tenants. The property performs more like a mobile home park for snowbirds than an actual RV park, which affects the type of financing that can be acquired.

“We found a credit union that liked the property and the operator. They offered him the opportunity to refinance his debt into a longer term fixed note and a 30 year amortization. No prepayment penalty on the loan and the increased cash flow will help with ability to purchase another park next year. He no longer has his properties tied up with cross collateralization which gives him more financial freedom” said Angela Kesselman, Associate Director of Finance.
A happy client commented: “I purchased an RV park just over a year ago and I had a terrible SBA loan that required liens on other properties and businesses. I’m not sure how I came across The Madison Group, but from the time I spoke with Angela on the phone the process was a seamless. Once Angela knew the loan would go through, she handed me over to her loan coordinator, Brandi. Now let me tell you, I’ve purchased or refinanced over 10 properties in the last 10 years and I’ve NEVER dealt with a loan coordinator with so much common sense and amazing communication. I plan on buying another RV park this year and hopefully the Madison Group can help me again. I would definitively recommend them to anyone looking for funding.”
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. 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 can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.
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