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.