PRESS RELEASE: The Madison Group facilitates the $3.95 million commercial real estate loan for a newly built apartment complex in Boise, ID
The Madison Group, a commercial broker and loan consultant, has facilitated the $3,950,000 permanent financing for the first phase of a newly constructed 56 unit apartment complex in Boise, Idaho. This property is 3.2 acres in size and located in a very desirable area of Boise, close to shopping and several business parks and calling centers. The property was completed at the same time as several other complexes in the community increasing the number of units available on the market. The competition forced the owners to put rent concessions in place to get the property leased.
The Madison Group team worked diligently to source a loan with the low interest rate of 3.5% on a 10 year term and 30 year amortization. The loan was locked prior to completion of construction and the owner was protected from rate increases. We were able to close the loan with rent concessions in place and secure maximum proceeds along with an interest only loan for 1 year. Finding a loan program with a flexible bank to meet the borrowers changing needs was essential to get the transaction closed.
“We worked with the bank to secure a lock before completion and lease up. In addition, due to the flood of new units on the market, the lender allowed $99 move in specials to fill the property up quickly. We were able to still get maximum proceeds based on market rents along with an interest only period. This ensured low payments on 3.5% interest rate while the property is being stabilized, said Angela Kesselman of The Madison Group, who originated the financing. “Sourcing the right loan was a win-win for the owner/builder.”
The financing was arranged by Angela Kesselman, Associate Director of Finance at The Madison Group.
Angela can be reached at 435-785-8350 or email her at angela@madisongroupfunding.com