In shopping for parks, I’m wondering if there is a firm occupancy cutoff under which we are likely to run into difficulty financing?
It seems that 80% sticks in my head as a number that Dave and Frank have thrown out there. If Occupancy was at 70%, or even 50%, but steady over a few years at that number, will it be difficult to get bank financing? Thanks everyone!
80% is more so the number for institutional financing. Local banks don’t really seem to care (in my experience) as long as they hit their yields and coverage ratios. Many of them actually like the “upside” element.
Good input- So it sounds like if we’re going for a smaller bank, we could likely tolerate a larger vacancy rate, assuming it is stable and there is demand.