Mag Mile Capital Completes $8 Million Financing for Housing Project
Mag Mile Capital Secures Substantial Bank Financing
Mag Mile Capital, Inc. (OTCQB: MMCP) has recently completed an impressive $8 million bank syndication financing aimed at developing a new manufactured home park. The funding is strategically allocated for horizontal construction, which plays a crucial role in laying the foundation for real estate projects. This financing endeavor signifies not just monetary support, but a testament to the approach the company has adopted in maximizing opportunities within the commercial real estate sector.
About the Financing Structure
The deal is structured with a favorable 65% loan-to-cost (LTC) ratio, meaning that it covers a considerable portion of the project’s costs. It entails a five-year term that begins with an initial interest-only phase lasting 18 months, facilitating the construction phase, followed by a comprehensive amortization schedule extending over 25 years. This structure indicates Mag Mile Capital's strategic foresight in catering to the needs of their development clients.
Insights from Leadership
CEO Rushi Shah expressed pride in the achievement, stating, "This transaction highlights our ability to deliver tailored financing solutions for manufactured housing communities." He emphasizes the alignment of the financing solution with their client’s investment strategies, which not only supports current projects but enhances future growth potential within their portfolios.
Similarly, Prabhat Jayara, Senior Vice President of Originations and Underwriting, pointed out that this particular closing underscores the company’s access to diverse capital sources. He noted, "The capital source for this transaction is a non-traditional bank syndication program suited for this non-traditional asset class in a non-primary market," which showcases Mag Mile's adaptability in navigating various funding avenues.
Mag Mile Capital's Position in the Industry
Successfully closing this financing arrangement is yet another milestone for Mag Mile Capital as a leading force in commercial real estate investment solutions. With a robust history of delivering innovative capital solutions, the firm continues to reflect a strong commitment to enabling development ventures across the nation.
Mag Mile Capital, renowned for its extensive background in real estate financing, operates as a boutique full-service mortgage banking firm. The organization has built a comprehensive national platform equipped with specialists in capital markets, and their expertise spans a broad spectrum of real estate asset classes.
The Importance of Manufactured Home Parks
The development of manufactured home parks represents a critical response to growing housing needs across various demographics. As housing affordability remains a pressing concern, such projects play an essential role in providing viable, accessible, and community-oriented housing solutions.
The funded project in Boardman, Oregon, not only aims to establish a community of manufactured homes but is also set to contribute positively to the local economy by creating jobs and improving quality of life for the residents.
Future Growth and Community Impact
Looking ahead, Mag Mile Capital remains focused on expanding its footprint within the real estate market by facilitating more projects like this one. The company is dedicated to leveraging its extensive experience and relationships to ensure continued success and impact in the communities it serves.
As they pursue their mission, staying adaptive to market needs and regulatory environments will be key. Mag Mile Capital's proactive approach to secured finance, coupled with a commitment to developing necessary housing solutions, ultimately positions them as a trusted partner for investors and developers alike.
Frequently Asked Questions
What is the primary purpose of the $8 million financing?
The financing is primarily aimed at the horizontal construction and capitalization of a manufactured home park.
How does the loan's structure benefit the project?
The loan features an initial interest-only period followed by a long amortization schedule, which significantly aids cash flow during construction.
Who are the key figures involved in this financing?
The transaction was facilitated by Rushi Shah (CEO) and Prabhat Jayara (SVP of Underwriting and Originations).
What markets does Mag Mile Capital operate in?
Mag Mile Capital operates nationally, with offices across several states, focusing on commercial real estate financing.
Why are manufactured home parks important?
They provide affordable housing options and contribute positively to local economies by creating communities and job opportunities.
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