Borrower had an opportunity to purchase a mismanaged mobile home park in NC.  The transaction required a lender that could provide significant flexibility in underwriting; 1) closing within a short timeframe (30 days), 2) underwriting rents that were well below market,  and 3) providing capex funds for immediate park improvements.

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Southeast Bridge was able to close the deal in the required timeframe, providing 75% of cost including 100% of capex budget lot and infrastructure improvements for 3 of the over fifteen company-owned mobile home parks in the market. The borrower’s strategy is to upgrade park infrastructure, complete the lot setup of 183 of 250 total lots and re-lease the lots/new park owned homes over a 1-year period.​

Borrower will make site improvements, move in a few park owned homes, and increase rents to market within the loan term.  Borrower’s plan is to refinance through life insurance company debt (being placed on a portfolio of similar parks in the market) or agency debt once all improvements are completed, lots are re-leased and NOI is optimized. Conservatively underwritten NOI after 12 months provides significant refinance proceeds over existing loan amount at a 1.6X DSCR using conservative FNMA standards (4.5% rate, 25-yr AM).