The Madison Group (TMG), a nationwide
leading source of Medical
Office financing,
arranged the $21,000,000 nonrecourse refinance of a medical office
building in
Utah. The borrower’s goals were to refinance a
bridge loan into a permanent long-term fixed loan. TMG secured
the financing with a 10-year fixed rate
of 4.7%
and a 30-year amortization at 75% LTV.
The property consists
of a 44,594 square foot medical center in a well-located area of Salt Lake
City. The building was completed and 83%
occupied since March of 2018. The nine-doctor investment team needed to refinance
their existing bridge loan, although several of the suites had not been built
out. The majority of the tenants are credit grade, but the unfinished space
posed issues for many lenders. The investment group needed flexibility to have
time to complete lease up and at the same time maximum proceeds to pay off the
existing debt.
With the debt
service coverage being tight, TMG used the window of opportunity of low rates to
reduce the rate and increase coverage DSC to meet the lender’s requirements. TMG secured a lender that was able to look at
the long-term leases and the in-place income while working around the vacancy
of the empty office suites.
“The execution of this loan allowed the
owners to keep the property for as long as they desire while giving the tenants
the flexibility to finish out the space as needed. It truly was a win for the them” said Angela Kesselman, TMG’s Associate Director
of Finance.
The financing was arranged by Angela
Kesselman at The Madison Group.
The Madison 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-capitalization 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.
The Madison Group can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.