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Student Housing Financing

Refinance of $2,600,000 for Student Housing Project in Utah

Tags: student housing financing, student housing refinance, commercial loans for student housing
Thursday, May 24, 2018
by Jeff Meierhofer

The Madison Group (TMG), a leading source of financing for student housing nationwide, arranged the $2,600,000 refinance for a 9-building student housing project in northern Utah. The borrower was interested in maximum long term cash flow and an aggressive fixed rate. The finalized terms of this loan were 5.04% interest rate, 12-year term, and a 30-year amortization. 

The refinance is for nine buildings with a total of 27, 3-bedroom units. The buildings, which were newly constructed between 2015-2017, are in a great location, close to schools and commerce.  The rental market in the Logan, Utah area has been, and continues to be very strong. The housing units have been upgraded and are 100% occupied.

As this is Phase 1 of the property and Phase 2 will be built adjacent to it, the necessary access and easements needed to be secured. A clubhouse will be built during Phase 2 and it was necessary to get the lender and underwriter to allow funding before the amenities were completed.

TMG worked with the title company, the legal professionals and the lender to secure acceptable easements between Phase 1 and 2.  The lender did not take title to the phase 2 land, which allows the borrower to build with a lender of the borrower’s choosing.

“Securing the financing took longer than expected,” said Jeff Meierhofer, TMG’s Director of Finance.  “In my next life I may consider being an attorney so I can get legal documents faster! But all parties stayed focused and the borrower got a great rate fixed for 12 years.”

The financing was arranged by Jeff Meierhofer at The Madison Group.  435-785-8350