The Madison Group (TMG), a leading source of RV park financing nationwide, arranged the financing for the $9,750,000 purchase of an RV park in Texas. The borrower, a repeat client of TMG, was interested in a non-recourse loan. The finalized terms of this loan were 5.6% interest rate, 10-year term, and a 25-year amortization.
This 4-star RV park is in an excellent location with 210 spaces on 23.7 wooded acres. It has a stable income source from long-term recreational vehicle tenants and has an occupancy rate of 85%. The park has common amenities including a clubhouse, shuffleboard court, big screen TVs and exercise, laundry and storage facilities.
The borrowing entity for this transaction was a group of 17 investors. This made it particularly challenging to get a non-recourse loan. Because the borrowing entity needed to have non-recourse to the LLC and not to the individuals, the loan was structured so only three borrowers needed to sign the carve-out provision. This paved the way for the borrowers to bring in additional capital through an investment group. The down payment was derived from a small group of individuals and silent investors.
“We do a good deal of mobile home park financing, and through our direct lenders we were able to source the debt for this RV park,” said Jeff Meierhofer, TMG’s director of Finance. “I would say it’s an unusual day when an RV park gets a non-recourse loan. We were happy to provide this for a repeat client.”
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 Meierhofer can be reached at 435-785-8350 or by e-mailing Jeff at Jeff.M@madisongroupfunding.com.