The Madison Group (TMG), a leading source of retail financing nationwide, arranged the $2,128,000 rate and term refinance for a retail strip center in Riverdale Utah. The property consists of 4 retail units with NNN leases. The borrower was interested in maximum cash flow from the asset. The finalized terms of this loan were 4.95% interest rate, 10 year term, and a 25 year amortization with no prepayment penalty.
The property was purchased by two out of state investors (LLCs) ten years ago. Both owners are retired and are looking to continue to receive maximum cash flow from the property. They were seeking the longest terms possible with an aggressive rate. They previously had a 10 year interest only loan when they purchased it 10 years ago. They were seeking a loan that provided some flexibility in the future if they decided to sell the asset - so a no prepay penalty loan was the best structure to meet their goals.
The retail center was built in 2006 and is located in a great location north of Salt Lake City. It has 9582 gross leasable SF and has four NNN leases with quality tenants. The tenants include Verizon and Check City.
The loan that needed to be paid off was a CMBS transaction. It had a very narrow window for payoff and it was necessary to have the loan fund during a specific time. Also, there was some lease exposure with leases coming due within the next two years. By using the excellent quality of the borrowers and the asset, TMG was able to secure a 10 year fixed product.
“The borrowers needed more loan flexibility because they did not know what their future investment plans would hold. So getting the maximum cash flow and the ability to prepay early fit their financial goals.” –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.