We are putting together a lender package on 3 parks we are trying to finance. Combined vacancy rate is just below the acceptable threshold - about 67% occupancy. We’re thinking of “decommissioning” lots - i.e. turning vacant lots into a playground, common space, etc. Does anyone know exactly how that would work and how the lender would view it? Could we tell the lender that our plan is to decommission a dozen lots after we buy the parks and therefore have an effective occupancy rate of 70-75% to get the loan, or is decommissioning lots more of a Refi tactic?
Thanks in advance