The Madison Group (TMG), a leading source of warehouse financing nationwide, arranged the $3,300,000 refinance of an industrial property in Kaysville, Utah. The borrower’s goals were to refinance a balloon note that was coming due and recapitalize funds for property repairs. TMG secured the financing with a 10-year fixed rate of 4.5% and a 30-year amortization at 75% LTV.
The property is a 59,064 square foot multi-tenant flex building. It is 18 years old and has 9 units on 3.8 acres. The property experienced some vacancies over a 3-year period after a large tenant downsized their space. It took through the 3rd quarter of 2016 to break the space up and find appropriate tenants. As of April 2017, the building is 100% occupied.
The historical net operating income for the property did not underwrite to the loan amount needed for the refinance. Just prior to hitting the 100% occupancy numbers, TMG brought in a lender that understood the history of the property and was able to underwrite off of the new rent roll.
By sourcing the best lender and loan product for the client’s financing goal, TMG was able to get a 75% cash out loan with a 30-year amortization. The new loan allowed the sponsor to refinance the existing debt, put some money aside for future capital improvements, and get cash back to recapitalize out of pocket funds used during the high vacancy periods. In addition, the borrowers lowered their monthly payments and increased the cash flow for this retired real estate owner.
“We worked diligently over many months to make sure the borrower was in the right position to get the best loan possible for the situation. It was a very successful transaction for the owner, who relies on this income for retirement,” 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 recapitalizations 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 firstname.lastname@example.org.