Mobile Home Park Portfolio Refinance

Property Type:

Mobile Home Park

Execution Type:



Lumberton, PA



Opportunity / Challenge

Borrower acquired a portfolio of 21 mobile home parks in NC in 2018/19 and is systematically repositioning them with upgraded park and lot infrastructure, and the addition of new park owned homes. The transaction required a lender that could provide flexibility in underwriting; 1) closing within a short timeframe, 2) underwriting rents and capex costs, and 3) providing capex funds for future lot and park improvements for 3 of the parks remaining to be improved.

Red Fox Capital Solution

Red Fox was able to close the deal in the required timeframe, providing 75% of total cost (including 100% of the capital improvement budget).

Exit Strategy

Borrower will make site improvements, complete setups for unleased pad sites and lease up the improved lots. Plan is to refinance through agency debt once all park improvements and lot setups are completed, and NOI is optimized. Conservatively underwritten NOI after 12 months provides significant refinance proceeds over the existing loan basis.

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