The Madison Group, a commercial broker and loan consultant, has facilitated the financing for an office warehouse property in Idaho. The $1.1 million first mortgage loan refinance was completed in less than 60 days. This 14,288 square feet facility was built in 2008 and leased to a single tenant.
The borrower’s goal was to refinance this building in to a new 25 year amortization with a 10 year term and take advantage of the current low rates and lock in to avoid future rate risk. The transaction was challenged because the property has a single tenant and the lease expiration in April of 2017. Many lenders could not overcome this hurdle.
The Madison Group was able to secure a loan with a term of 10 years with a rate of 4.65%. The amortization was 25 years which will allow the buyer to continue excellent cash flow.
“The short lease expiration and the single tenant made it a challenge for underwriting.” said Jeff Meierhofer of The Madison Group, “We needed to go the extra mile to find the right lender to who was willing to provide the terms the borrower needed. Our team worked with the borrower and lender to ensure a smooth closing of this loan.”