Transaction Description: The Madison Group, a commercial loan consultant and broker, has provided the financing for a single tenant net leased neighborhood grocery store. The property consists of a recently renovated, stand-alone, 53,763 square foot single story retail center in a tertiary market. The building has operated as a grocery store for nearly 50 years since its construction in 1968.
Challenges: The tenant is a quality company, but is not credit grade. As a stand-alone location there was some additional risk in the location and market. The buyer, a REIT, could not provide a warm body carve out for the nonrecourse loan other than to the borrowing entity. The borrowing group wanted a 30 year amortization to garner the greatest cash flow possible for the REIT.
Solutions: The loan team at The Madison Group provided source data and other information to get the lender comfortable with the asset. Many lenders were not comfortable with the location and single tenant nature, but TMG worked for the client/buyer to procure the financing terms that fit their needs. TMG secured a loan non-recourse loan for the client with a 10 years fixed term, 30 year amortization, and an excellent low rate.
The financing was arranged by Jeff Meierhofer at The Madison Group.
The Madison Group 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 Meierhofer can be reached at 435-785-8350 or by emailing Jeff at email@example.com.