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.
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.
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