The Madison Group (TMG), a leading source of multifamily
financing nationwide, arranged the $8,680,000 non-recourse refinance for
an apartment complex in Hurricane, Utah. The borrower was interested in a non-recourse
loan that allowed for cash out and recapture of cash infused into Phase 1. All
equity recaptured from Phase 1 will go into the building of Phase 2. The
finalized terms of this loan were 5.05% interest rate, 12-year term, and a 30-year
The property is a recently completed 84-unit apartment
community with a resort-style feel. The lease up was very fast as a gap exists
for quality product in this market. Final leases have been signed on 82 of the
84 units. The property combines the
convenience of modern day living in a tranquil, quiet setting. This apartment community features one-, two-
and three-bedroom units with an amenity package well above anything else
offered in Hurricane or the surrounding area.
Hurricane is in the St. George sub-market.
The total project will be a 192-unit, multi-family
development consisting of two phases. The first phase, which was recently
completed, includes 84 units with a pool and other amenities. The second phase
is composed of 108 additional units. The project has had tremendous success in
getting the first phase leased up so far. The Southern Utah market has a
serious need for multi-family units.
Considering the current success in pre-leasing the property
and feeling the demand was greater than expected, the borrowers are looking to
move into Phase 2 construction as soon as reasonable.
The timing of the cash out loan on Phase 1 was critical to
recapitalize and move forward with Phase 2.
Special attention was paid to inter-property agreements and easements.
Phase 2 is being built by the same builder and is owned by the same groups. The
loan funded 90 days after the property achieved 90% occupancy.
everything in most cases, said Jeff Meierhofer, TMG’s Director of Finance. “The
funds for the refinance helped the developers get moving on Phase 2 without
delay saving money on construction costs.”
The financing was arranged by Jeff Meierhofer at
The Madison Group.
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.
Group and Meierhofer can be reached at 435-785-8350 or by e-mailing Jeff at