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5/03/18
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Columbia Pacific Advisors has funded $10.25 mil in short-term debt to complete the conversion of a former RV Park into a “tiny home” resort community near Salem, OR.
Funded through Columbia’s bridge lending platform, the two-year, interest-only financing is secured by the Hope Valley Resort, a gated, master-planned community that currently features 194 pads accommodating both tiny homes and recreational vehicles, community lodge, seasonal outdoor pool, fishing pond, tennis court, and dog park. Located in the city of Turner, OR, 15 miles south of Salem, Hope Valley Resort neighbors the numerous vineyards in Oregon’s famed wine region of the Willamette Valley.
The sponsor, a local family which has owned the property for nearly 50 years, completed a master plan in 2014 that called for the removal of RV tenants in order to completely transform the property into a tiny home community. After finishing the infrastructure to support the conversion to tiny homes, the sponsor remodeled the existing clubhouse and developed a 160-unit self-storage facility to accommodate full-time resident needs.
Currently, all 105 of the pads converted to tiny home sites are occupied and there is a significant backlog of future residents to backfill the existing RV spaces, according to Billy Meyer, managing director of real estate lending for Columbia Pacific Advisors.
“The borrower will be able to use our capital to increase its inventory and completely transition to a tiny home community with 250 sites within the next 18 months,” said Meyer. “Importantly, we were able to accommodate the borrower’s need for a quick close in order to meet a strict deadline that would allow the family to buy out a partner.”
While growing in popularity, the tiny home phenomenon is still in its infancy. Hope Valley is one of approximately 50 such communities in the United States, according to online residential real estate company Trulia.
“Hope Valley combines the tiny home concept with community lifestyle that suits the needs of families looking to downsize and simplify their lives,” added Meyer. “We’re happy to be on the cutting edge of this trend.”
The financing was arranged by Nate Wingham of IndoGro Capital.
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