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Multifamily Financing

Recent Closed Loan for an Apartment in Utah

Tags: multifamily financing, apartment loans, construction take out loans
Thursday, Oct 25, 2018
by Jeff Meierhofer

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $4,150,000 refinance for a townhome style apartment project in Northern Utah. The borrower’s goal was to secure a rate and term refinance of the in-place construction loan. The finalized terms of this loan were 5% interest rate, 10 term, and a 30 year amortization. 

The property is a townhome style multifamily complex totaling 102 units located on a 9.04-acre site in Smithfield, Utah. It was built in 2016 and 2018. The units are newly constructed two and three bedroom townhome style apartments. The property has a pool, playground, and a club house. The borrowers have a successful track record for a similar style product in the area. Leasing began in April of 2017 and the property recently achieved full occupancy.

TMG overcame several challenges to ensure the completion of this transaction.   The final lease up was only 30 days ago. Additionally, the borrowers wanted to close quickly on a 30 year amortization with no prepayment penalty. Furthermore, the property is located in a rural market.  TMG worked with the lender that was able to provide flexible terms to allow for future expansion or disposition of the asset.

Our client needed flexibility on prepay, and also a timely closing to hit a certain payoff date.  Because of the success of this transaction, we are now working on the next loan with this repeat client.” said Jeff Meierhofer, TMG’s Director of Finance.