Tower Capital recently refinanced a 185-unit mobile home park community located in Williston, North Dakota. The property was originally acquired by Tower’s client several years ago to take advantage of the shale oil boom, however, challenges with the oil industry and fracking have reduced the demand for housing in the area. The property possesses county permits to convert the existing subdivisions to individual fee simple lots. Majority of the property’s income comes from the lots and a small portion comes from owning units. The sponsor plans to convert vacant lots into single family homes and use the proceeds to pay down the loan.

The $9,064,000 bank loan secured by Tower offers the sponsor a 5-year fixed rate loan at 3.75% based on a 20-year amortization schedule. The loan is structured to provide lot releases as the borrower executes their business plan.