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Senior Housing Refinance

A successful closed loan: $12,339,000 cash out refinance of a senior housing property in Utah

Tags: senior housing loans, multifamily loans
Monday, Apr 30, 2018
by Angela Kesselman

     The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $12,339,000 cash out refinance of a senior housing multifamily apartment project in Utah.  The borrower had reached stabilization of the project and needed to get a nonrecourse loan with maximum leverage.   TMG secured the financing with a 10-year fixed rate of 4.62% and a 30-year amortization.

     This beautiful new senior housing project is ideally located in metro Utah.  The property is an age-restricted, multi-family property.  Two buildings with a total of 90 one-, two- and three-bedroom units are located on a 3-acre site.  Phase 1 of the project has been fully occupied for 12 months and phase 2 finished leasing at the beginning of the year. 

    TMG had arranged the financing for a two phased construction loan and the term of construction loan was coming due.  The transaction presented several challenges including the fact that the majority owner sought a cash out refinance loan to buy out his partners, the property had just reached stabilization, and the borrower needed maximum proceeds. 

     TMG reached out to agency lenders to see which would provide the best terms.  Freddie Mac was more aggressive on the underwriting and was able to fund an acceptable loan at a low interest rate.  Therefore, the borrower was able to obtain a long-term fixed-rate nonrecourse loan while securing long-term financing and buying out his partners.

     We were able to provide construction financing and long-term financing to this client, and gave him the cash he needed to achieve his goals.” said Angela Kesselman, TMG’s associate director of Finance.  “This is his first multifamily project, and we were there to assist him all the way through the process.

The financing was arranged by Angela Kesselman at The Madison Group.

The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances and re-capitalizations for a variety of property types including:  multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States.  Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital.  TMG works efficiently and effectively to get the transaction closed and funded.

The Madison Group can be reached at 435-785-8350 or by emailing Kesselman at angela@madisongroupfunding.com.