The Madison Group (TMG), a leading source of student housing financing nationwide, arranged the $1,300,000 cash out refinance for a student housing portfolio in Northern Utah. The student housing complex consists of 3 small student housing properties. The borrower was interested in refinancing his existing properties to a lower interest rate, combining all properties into one loan, and obtaining cash-out. The finalized terms of this loan were 4.5% interest rate, 10 year term, and a 25 year amortization.
The borrowing entity had multiple loans on three different properties with higher rates shorter-terms. They were looking to combine their loans into a longer fixed term and create a small liquidity event to recapture cash put into the properties over time.
A good deal of effort was spent working through the income numbers because the cash flow during the summer session is much less than during the school year. One building was only recently finished and historical information was limited. TMG was able to work around that challenge by forecasting income for the upcoming year to meet the loan criteria.
“Often times loans are complicated and borrowers give up and just stick with what they have. We worked through the details of the 3 properties to help underwriting get a handle on the overall income and forecasted future income to show a stable flow of income.” –Said Jeff Meierhofer, TMG’s Director of Finance. 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.