mPark Partners recently provided a loan for 50% of the acquisition price of two mobile home parks in West Virginia. The remaining 50% was provided by the sponsor of the acquisitions. who had been buying multiple mobile home parks throughout West Virginia.
The acquired parks were not able to achieve bank financing due to the fact that lot rents has not been raised in 30 years and in fact, the rents were lower than the average cell phone bill. As a result, the properties were cashflow negative and thus, unfinanceable.
Without our foresight that the properties would easily become cashflow positive after rents were raised to market, we agreed to provide the financing to consummate the transaction.