Michigan RV Park
Background: The investment unit originated a 3.8 million senior loan secured by a mortgage on 102 acres, 395 RV sites and 35 cabins and by personal guaranty from the developer. The credit facility was used for the final acquisition and final stage horizontal development of the park.
Problem: Due to setbacks caused by another lender who could not fund the project in full it was imperative to complete the transaction within a short timeframe. The transaction was funded in less than two weeks start to finish.
Strategy: CCP evaluated the closing deadlines as well as the construction requirements to deliver the project on time for the grand opening. We chose to conduct due diligence and concurrently start the legal documentation necessary to achieve the client’s end goal. CCP coordinated internal due diligence, internal, external, and sponsors legal, as well as title to facilitate the closing. Although this approach posed underwriting cost exposure to the sponsor it was the best means to achieve the desired end results.
Result: The loan was repaid in full, on time resulting a ROI north of 20% ROI.