Borrower acquired two distressed mobilehome parks (210 pads) in Jacksonville, FL. The parks are dated, in need of significant capex, and are presently 30%occupied. The repositioning involvesupgraded park and lot infrastructure, and the addition of park owned homeinventory.
The transaction required a lender thatcould a) close within a short timeframe, and b) was willing to fund both realestate and home inventory in the deal. Additionally, a portion of the equity inthe transaction was deferred (secured by another park) providing a mechanismfor the borrower to enhance the deal IRR.
Borrower’s plan is to refinance throughconduit debt once all improvements & lot setups are complete and the parks are stabilized.