How an MHC Operator Refinanced a Maturing Note on a 3-Community Portfolio With $7M Bridge Capital
Sources: Small-Balance Commercial Refinance — PeerSense, Asset-Based Lending Hub
How did PeerSense solve this scenario?
Maturing note refinanced, capex funded, 14-mo exit to agency. A 15-year manufactured housing community (MHC) operator with a portfolio of seven communities across three Midwestern states. PeerSense placed the deal into mhc portfolio bridge with conservative leverage, asset-based underwriting, and fast execution. Composite case study based on the deals we close every month.
— PeerSense Composite Case Study · 2026-05-01
At a glance
| Loan size | $7.0M senior bridge |
| Property type | 3-community MHC portfolio |
| Total pads | ~340 across 3 properties |
| Markets | Midwest secondary/tertiary |
| LTV | 65% portfolio-level |
| Term | 18-month interest-only |
| Use of proceeds | Maturing note payoff + capex + interest reserve |
| Exit | Agency (Fannie/Freddie MHP) permanent at stabilization |
The borrower
A 15-year manufactured housing community (MHC) operator with a portfolio of seven communities across three Midwestern states. The deal in question covered three of those communities — about 340 total pads — that had been bundled under a single CMBS loan now reaching maturity.
The portfolio was performing, but two of the three communities needed material capex investment: water/sewer infrastructure improvements, road repairs, and selective replacement of aging park-owned homes. The original CMBS loan had no capex carve-out, so the operator had been funding small improvements out of operating cash flow — not enough to address the larger needs.
He needed a refinance that: 1. Paid off the maturing CMBS loan 2. Funded $1.5M+ of capex across the two communities 3. Held him 12-18 months while the improvements stabilized occupancy 4. Allowed clean exit to Fannie Mae or Freddie Mac MHP execution at stabilization
Why traditional financing said no
Agency MHC execution (Fannie Mae and Freddie Mac both have MHP programs) is the natural permanent home for stabilized manufactured housing communities. But agency lenders need:
- Stabilized NOI on a trailing-12 basis (improvements not yet completed = NOI not yet stabilized)
- Capex completed and reflected in the trailing operating numbers
- A unified borrower entity and management structure (his portfolio was held across multiple LLCs requiring restructuring before agency execution)
CMBS could potentially have worked but was quoting wider spreads and didn't fit the capex-funding requirement. Bank financing wouldn't cover a 3-property portfolio at this size.
He needed a bridge — a 12-18 month product that covered the maturity, funded capex, and gave him the runway to season improved NOI before agency takeout.
How PeerSense solved it
We placed the deal into a commercial bridge program in our network that has a strong track record on MHC portfolios. The structure:
- $7.0M senior bridge at 65% portfolio-level LTV of the appraised value
- 18-month interest-only term with 6-month extension option
- Use of proceeds:
- - ~$5.1M — maturing CMBS loan payoff
- - ~$1.4M — capex reserve (drawn against completed improvements with inspection)
- - ~$280K — interest reserve (first 6 months)
- - ~$220K — closing costs and origination
- Cross-collateralized across all 3 communities
- Recourse with carve-outs (springing for fraud, environmental, etc.)
- Pricing in the low-double-digit range, fixed
What made the deal work: - Operator's 15-year track record on stabilized MHCs - Portfolio-level cash flow strong enough to service the bridge while improvements were funded - Clear exit plan to Fannie Mae or Freddie Mac MHP execution at month 14-18 - Capex was structured as draws — funds released only against inspected improvements, protecting the lender's risk
The outcome
- CMBS maturity addressed cleanly at close — no extension fees, no default risk
- Capex completed by month 12 across both communities
- Stabilized NOI documented by month 14 — capex flowed through to higher pad rents and improved occupancy
- Freddie Mac MHP execution closed at month 16 — full payoff of bridge plus modest cash-out at new stabilized value
- Portfolio re-leveraged at lower long-term agency pricing
Frequently asked questions
Can I get a portfolio loan on multiple manufactured housing communities?+
Yes. Bridge lenders in our network regularly fund 3-10 community MHC portfolios under a single closing, cross-collateralized across the assets.
Why use a bridge instead of refinancing directly into agency?+
Because agency MHC execution requires stabilized NOI and clean capex history. If your portfolio needs material capex investment, you need a bridge to fund the work and season the resulting improved NOI before the agency lender will engage.
What LTV can I get on an MHC portfolio bridge?+
Typically 60-70% portfolio-level LTV against the appraised value. Some programs go to 75% with stronger sponsorship and lower-risk markets.
Can the bridge fund capex on the properties?+
Yes — funded as a reserve at close, drawn against inspected improvements. This is a key reason MHC operators use bridge financing instead of trying to force a direct agency refinance.
What's the typical exit?+
Fannie Mae or Freddie Mac MHP permanent execution once the portfolio is stabilized. Both agencies have active MHP programs with attractive long-term pricing.
Can a smaller MHC portfolio (1-2 communities) get bridge financing?+
Yes, though the loan size and economics are different. Single-property MHC bridges typically run $1M-$3M; portfolios run $5M-$25M+.
Are park-owned home improvements financeable?+
Yes — when bundled into a real estate-secured bridge loan as a capex line item. Stand-alone home replacement is usually financed separately through chattel financing.
What about tertiary-market MHCs?+
Lenders in our network actively fund MHCs in tertiary and rural markets, which is unusual relative to most CRE lenders. The asset class economics support smaller-market deployment. ---
Have a similar scenario?
Composite case studies based on the deals we close every month. PeerSense routes to the right program + lender.
Composite case study. Names, locations, identifying details, and dollar amounts modified to protect borrower privacy. Actual rates and terms vary by borrower, property, and market conditions. PeerSense is a capital advisory firm and does not directly originate loans.