Madison Group (TMG), a commercial broker and loan consultant, has facilitated
the financing for the $1,900,000 refinance of a light industrial complex. The finalized terms were 4.75% on a 25 year
amortization and 10 year fixed term. The
loan proceeds allowed for the payoff of the current loan and cash out to the borrower
for return of capital that had been infused to the property over time. The borrowers
will hold back a reserve for business purposes and invest in other real estate.
Being able to recapture nearly $500,000 of capital provides the borrower new
opportunities and security for the future.
property consists of 4 building totaling 109,650 square fee. There are 6-8 suites in each building and the owners occupy 20%. The borrowers had a current loan with a rate
of 7.56% and 2 years left on the loan. They were willing to pay the defeasance to get locked into a lower
rate. The current lender was unable to
provide the cash out that the borrowers desired. They were also being told that
their maximum length of term would be five years. They were able to lock into a
great rate for a 10 year term with a reasonable prepayment penalty.
Link, The Madison Group Processor, commented, “The number of tenants in the
property and the cash out proved to be a good test for both the lender and The
Madison Group. All parties took their time and went over the property
thoroughly to provide the terms that made sense to the borrowers for the long