- The Madison Group arranged a $36 million non-recourse, interest-only refinance loan for six manufactured housing communities across Alabama and Georgia.
- The portfolio spans 850 homesites, with the majority operating under a park-owned, “horizontal apartment” model.
- The deal structure offered full-term interest-only payments and no restrictions on the sponsor’s home ownership operations.
Financing a five-star portfolio:
The Madison Group (TMG), a national commercial real estate financing firm, has arranged a $36 million non-recourse loan to refinance a portfolio of six manufactured housing communities in the Southeastern U.S. Located across Alabama and Georgia, the portfolio includes approximately 850 homesites, with more than 80% operated as park-owned homes.
A flexible deal:
The sponsor utilizes a “horizontal apartment” model—owning and leasing most of the homes—while maintaining five-star community standards. The borrower’s main goal was to secure a cash-out refinance with a non-recourse structure and full-term interest-only payments. TMG identified a lender willing to underwrite the loan based solely on lot rents, a rare condition that provides the sponsor maximum operational control.
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Loan highlights:
- Loan Size: $36 million
- Term: 5 years
- Structure: Non-recourse, full-term interest-only, cash-out refinance
- Location: Alabama and Georgia
- Asset Type: Manufactured housing communities
Industry perspective:
“Our client sought a capital structure that maximized liquidity and flexibility while maintaining control of their operations,” said Kyle Losch, Director of Finance at The Madison Group. “We’re proud to have arranged a financing solution that met those objectives through our deep relationships with national lenders and capital markets.”
Why it matters:
Manufactured housing continues to be a resilient and attractive asset class, especially in the Southeast. This deal reflects growing institutional interest in high-quality manufactured housing portfolios, particularly those operated under innovative ownership and leasing models.
What’s next:
The Madison Group remains active in the sector, offering access to a broad network of capital sources, including CMBS, agency, bank, credit union, SBA, and private lenders. As demand for affordable yet quality housing rises, financing firms like TMG are expected to play a growing role in supporting investors scaling this asset class.
