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.
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.
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
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.