The Madison Group Facilitates a $1,650,000 Non-recourse Commercial Loan for a MHP in Huntsville Alabama

The Madison Group, a commercial broker and loan consultant, has facilitated the financing for a 173 pad Class C manufactured home community in Huntsville Alabama.  The park was only 72% occupied at the time of origination. The $1,650,000 loan was sized to 75% of the stabilized value so that additional lease up could occur. The borrower received cash out loan to pay down current park models, thereby, increasing cash flow. TMG facilitated a non-recourse cash out loan at 70% loan to value with a fixed rate of 5% with a 10 year term and 20 year amortization. The nonrecourse loan allowed them to have an entity be the borrower with no recourse to individuals in the LLC other than standard carve outs.  In addition, to increase cash flows, the borrower was able to pay off previous money put into the community for park model units. This MHP has both pad rental and multiple units that are owned by the park and rented to tenants. This was a challenge for previous lenders, but TMG was able to find a lender to meet the needs of the borrower. “There were multiple moving parts on this transaction which had caused previous lenders issues, said Director of Finance Jeff Meierhofer. TMG’s team was able to work at a high level to verify income from all sources in the park.   Our staff also worked to mitigate some survey issues and income from park owned units, thereby facilitating a smooth funding.” The financing was arranged by Jeff Meierhofer, Director of Finance 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. TMG and Jeff Meierhofer can be reached at 435-785-8350 or by emailing jeff.m@madisongroupfunding.com.