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The Madison Group Arranges Cash Out Refinance for an Office Tower in Colorado

Tags: Office Refinance, Office Building loans, Commercial Office Financing, Cash out Loans
Monday, Nov 06, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of office financing nationwide, arranged the $2,500,000 cash out refinance with a $200,000 line of credit for an office building in Colorado. The property consists of two eight-story buildings with 28 office units. The borrower’s goals were to get a cash-out refinance to lower his current rate and renovate some units within the building.  The finalized terms of this loan were a 5% interest rate, 5-year term, and a 25-year amortization. 

Located in the city of Centennial, approximately 14 miles south of Denver, the twin-tower office complex is adjacent to East Arapahoe Road, a major arterial serving the Denver-Aurora metropolitan area.  Tower number 1 has rental space for 26 tenants while tower 2 has space for 20.  The combined 85,000 square-foot complex features parking for 215 vehicles, including some enclosed garage parking beneath the towers.

Obstacles hindering consummation of this loan were low occupancy in the office space with many tenants leasing on a month-to-month basis, rather than holding long-term leases.  Additionally, varying re-purchase dates of several condominium office units required the loan originator to conduct rigorous research, calling various title companies to acquire needed documentation.  Another challenge was attempting to retrieve required documentation from one of the borrowers, a very busy state senator.

 “We worked hard on finding a lender as the borrower continued to increase occupancy while the loan was being developed,” said TMG’s Loan Processor Brandi.  “We remained in constant contact with the lender to get them what they needed and to satisfy all their conditions. Working diligently with title companies to ensure everything, such as payoffs, kept this file moving along.  Ultimately, the borrower received great loan terms.”

“We faced a lot of struggles and obstacles but after 11 months of keeping on top of the file and fighting through the challenges, we were able to close on this loan,” said Jeff Meierhofer, TMG’s Director of Finance.

The financing was arranged by Jeff Meierhofer at The Madison Group.