Transaction Description: The Madison Group, a commercial loan consultant and broker, has provided a 15 year fixed loan at a rate of 4.15% on this 20-year-old industrial/warehouse property in Indianapolis IN. This 78,600 square foot building was constructed in 1994 and was in need of some updating and physical repairs. It contains an office area attached at the front façade of the shop area (manufacturing). The tenants business has changed hands over the years but continues to do light industrial work in the building. The seasoned borrower desired to reduce higher interest rate loan with short amortization and keeping payments same.
Challenges: The property is located in a “B” economic area and was in need of some physical repairs. The tenant is a national firm, but has struggled during the economic downturn and special attention was needed to work with the lender and the tenant to fully understand their financial position. The borrower was most interested in a 15 year fixed product even though the lease expires in seven years.
Solutions: Madison group work through the details with the borrower and the lender to overcome the financial questions of this single tenant transaction. The low LTV and the shorter amortization mitigated the challenges with the property. The borrowers received a loan with cashout of over $200,000 to utilize for any rehab or future reserves.
“We worked closely with the lender to get a loan that fit the borrower for his long-term investment needs,” said Jeff Meierhofer of The Madison group. “Because of the low rate the borrowers were able to keep their payment very similar to the previous loan but have a fixed rate for the entire term of the loan.”
The financing was arranged by Jeff Meierhofer 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-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.
The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.