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Student Housing Financing

Recently Closed Loan: $3MM purchase of Student Housing Apartments in Idaho

Tags: student housing financing, apartment loans, Utah, commercial financing
Tuesday, Apr 16, 2019
by Jeff Meierhofer, Director of Finance
Summary:  The Madison Group (TMG), a leading national lending source of multifamily and student housing financing,arranged the $3,039,600  purchase of a student housing  
complex in northern Utah. The borrower’s goals were met in purchasing this value-add 
project and are now taking the time to update and enhance the asset before the fall 
semester.

The borrower had a purchase contract and an appraisal, but was having a 
difficult time finding the lending program that would provide a high enough LTV to 
meet his 25% down payment . TMG had a very short timeline to 
close with the contract expiring within 30 days.  The borrower received a 75% 
LTV loan and closed timely. The aggressive interest rate with no prepayment 
penalty on the loan will allow the borrower to enhance the asset and reposition 
the debt to a nonrecourse loan in the next 12-24 months.

Location: Utah
Property: Student Housing Apartments
Loan Amount: $3,039,600
Interest Rate: 4.49%
Term: 3 Year with a 3 year extension if needed
Amortization:  25 Year 
Prepayment:  None