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The Madison Group Arranges $3,975,000 Refinance for Multifamily in Utah

Tags: Multifamily loan, Apartment loan, townhome loan, Utah loan, commercial mortgage loan
Thursday, Dec 07, 2017
by Barb

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $3,975,000 refinance for a townhouse apartment complex near Logan, Utah. The newly constructed complex consists of 54 units. The borrower was interested in getting a rate and term refinance of the in-place construction loan. The finalized terms of this loan were a 4.40% interest rate with a 5-year term and a 30-year amortization.

The property occupies 4.45 acres along 400 South in Smithfield, Utah, north of Logan.  When completed, the complex will include 12 two-story buildings with two-bedroom, three-bedroom and four-bedroom rental apartments.  Each unit will be furnished with a range/oven, built-in microwave oven, refrigerator, garbage disposal and dishwasher.  The complex will also include off-street parking spaces for 124 vehicles.

The occupancy factor for the area is over 95 percent. The borrowers have a successful track record for a similar style product in the area. A waiting list already exists for the apartment units which are being rented as soon as they come online.

 Among the challenges to the completion of this transaction, the appraiser took more than two weeks to provide revisions to the appraisal report; a Phase I environmental report needed to be ordered; and before the loan was able to close, the Certificates of Occupancy needed to be completed.

The team at Madison Group stayed in contact with the lender and borrower to make sure the transaction was proceeding smoothly and in very timely matter. They ordered the Phase I report and stayed in contact with the engineer to answer any questions that needed answering. Direct and consistent daily communication ensured the transaction would close on time.

 “Our team went above and beyond for our repeat client with a great project to get a timely closing of his multifamily project,” said Jeff Meierhofer, TMG’s Director of Finance.