Press Release: 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.