Mag Mile Capital executive vice president Rob Bernstein and senior vice president Matt Weilgus, based out of the Westport, Connecticut, office have completed a $4.3 million five-year loan for Aran Capital and its partners who recently acquired a portfolio of three mobile home properties in Indiana.
The three parks are located in Shipsewana, Galveston and Russiaville, Indiana, and contain a total of 183 mobile home pads.
“Debt placement for mobile home parks is challenging given the uniqueness and niche aspects of this asset class. Further, this particular portfolio was daunting due to the high percentage of park-owned homes, as opposed to resident-owned homes,” said Bernstein. “Despite these hurdles, Mag Mile Capital was able to identify an institutional lender who could quickly understand the assets and worked efficiently with the sponsor to complete this transaction and deliver a best-in-market result to our client.”
Mag Mile Capital arranged the five-year acquisition loan with an interest rate of 5.5 percent and a 75 percent loan-to-cost ratio. Amortization is interest-only for two years and for 30 years thereafter.