The Madison Group (TMG), a leading source of multifamily loans nationwide, arranged the financing on a $3,800,000 purchase of an apartment complex in Jacksonville, Florida. The borrowers used a 1031 exchange to purchase this property making a timely closing essential. The finalized loan terms were 3.99% fixed for 5 years with a 10 year term and a 30 year amortization.
It was important for the buyer to be able to get a 30 year amortization and a low rate on the transaction to maximize the property’s cash flow. This asset satisfied the investment amount necessary for their 1031 requirements but the loan had to be closed quickly.
TMG looked to their portfolio of multifamily lenders to provide 75% leverage and a 30 year amortization. Fannie Mae seemed an obvious choice for the loan but they consider Jacksonville a soft market and would limit loan proceeds on this transaction. TMG engaged with a lender that was comfortable with the collateral and the borrower’s ability to operate this property, while closing on a tight timeframe. In addition, we had a seller that was uncooperative in providing paperwork, so TMG had to be very focused on the timeline throughout the processing of the loan.
TMG teamed with the right lender that was willing to work with the out-of-state buyers and provide the terms they desired. The 1031 exchange was successfully closed on time. The borrower received a low rate and a long amortization with no prepayment penalty which gives them flexibility moving forward.
“The buyers were diligent in their search for a 1031 replacement property. It took a while for them to find a multifamily property that suited their needs and we ran up against 1031 deadlines. We were able to perform efficiently and get the loan closed with an excellent rate and terms” said Angela Kesselman, TMG’s Associate Director of Finance.
The financing was arranged by Angela Kesselman 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 can be reached at 435-785-8350 or by emailing Angela at email@example.com.