The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged a $1,700,000 loan for the purchase of an apartment complex in Ogden Utah. The borrower’s goal was to purchase his first multifamily property with a long term fixed rate and put down only 25%. TMG secured the financing with a 10 year fixed rate of 4.64% and a 25 year amortization.
The property is comprised of 15 two-bedroom townhome-style units and 5 two-bedroom apartment units. The property was built in the 1980s and is located in a strong tenant market with a consistent full occupancy and a waiting list. It has always been operated as a HAP housing project and has a newly signed 5-year HAP Section 8 contract. The buyer has not owned or operated a multifamily project with housing assistance, but does have experience with 4-plex properties with assistance. He was coming out of 1031 exchange and wanted to use these funds for the down payment.
Since the borrower did not have experience with multifamily or a larger HAP housing projects, the financing was more difficult to find. TMG was able to engage a local credit union to fund the transaction. They were comfortable with the stability of the project and felt that with an experienced professional management company, the property would perform well. They offered a full 75% LTV purchase financing as long as the borrower guaranteed the loan.
“Typically, lenders are conservative with first time buyers of multifamily, and this transaction was complicated even more because of the HAP component. Our client was able to get maximum leverage on the transaction, and an excellent interest rate. –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.