The Madison Group
arranges $1.3 million loan for purchase of retail center
The Madison Group (TMG), a leading source of retail
financing nationwide, arranged the $1,300,000 loan for the purchase of a
retail center in Utah. The borrower was interested in an aggressive rate to
receive maximum cash flow. The finalized terms of this loan were a 4.3%
interest rate, 5-year fixed term and a 10-year maturity on a 25-year
amortization. The loan has no prepayment penalty, which provides ultimate
flexibility for the investor.
The property is an existing 5-unit retail center containing
8,799 square feet of gross leasable space. Significant improvements were made
in 2013 and all spaces are currently 100% leased. The property is located on a busy north/south
corridor in West Valley City, Utah.
Among the challenges the property presented to completion of
the transaction are that one tenant occupies more than 40 percent of the retail
center, which is leased primarily to local “mom-and-pop” businesses. The retail property is visible while driving
south but not as well while driving north.
In order to make this a great loan, TMG worked to find a
lender that could understand the local market. The current market is interested
in “Amazon proof” tenants and TMG was able to work through this with
underwriting. The buyer wanted cash flow and flexibility. The loan terms allow
for excellent cash flow and the ability to trade the property without a prepayment
that do not have credit tenant occupants are becoming more difficult to finance,”
said Jeff Meierhofer, TMG’s director of Finance. “That requires digging deep with underwriting
and helping them understand the value of service-related businesses.”
The financing was arranged by Jeff Meierhofer at
The Madison Group.
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.
Group and Meierhofer can be reached at 435-785-8350 or by emailing Jeff at