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Medical Office Financing

Recently Closed Loan: Georgia Medical Office Building Investment Purchase

Tags: medical office financing, office loans, medical office mortgage loans, low prepayment penalty
Monday, Oct 14, 2019
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of commercial real estate financing, arranged the $1,900,000 loan for the purchase of a 22,606 square foot, medical office building in Georgia.    The borrower’s goal was to purchase the medical office building that is only 50% occupied with maximum leverage.

TMG was able to secure a loan with 25% down payment which also included additional tenant improvement and leasing commission funds for lease up of the property.  They also negotiated 12 months of Interest only payments and no prepayment penalty on the transaction, as the buyers intend to sell in the next 3 years. 

Summary

Location:  Georgia
Property:  Medical Office Building
Loan Amount: $ 1,904,000
Interest Rate:  5.95%
Term:   12 month I/O, 3 Year term
Amortization:   25 Years 
Prepayment:   None
LTV:  78%

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Medical Office Financing

The Madison Group Arranges $21,000,000 loan for a medical office building in Utah

Tags: medical office refinance, nonrecourse loans, investment financing
Monday, Oct 07, 2019
by Jeff Meierhofer

The Madison Group (TMG), a nationwide leading source of Medical Office financing, arranged the $21,000,000 nonrecourse refinance of a medical office building in Utah.  The borrower’s goals were to refinance a bridge loan into a permanent long-term fixed loan.   TMG secured the financing with a 10-year fixed rate of 4.7% and a 30-year amortization at 75% LTV.

The property consists of a 44,594 square foot medical center in a well-located area of Salt Lake City. The building was completed and 83% occupied since March of 2018. The nine-doctor investment team needed to refinance their existing bridge loan, although several of the suites had not been built out. The majority of the tenants are credit grade, but the unfinished space posed issues for many lenders. The investment group needed flexibility to have time to complete lease up and at the same time maximum proceeds to pay off the existing debt.

With the debt service coverage being tight, TMG used the window of opportunity of low rates to reduce the rate and increase coverage DSC to meet the lender’s requirements.  TMG secured a lender that was able to look at the long-term leases and the in-place income while working around the vacancy of the empty office suites. 

The execution of this loan allowed the owners to keep the property for as long as they desire while giving the tenants the flexibility to finish out the space as needed. It truly was a win for the them” 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 re-capitalization 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 angela@madisongroupfunding.com.

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TMG arranged a nonrecourse loan for a apartment complex with a long term fixed rate of 3.77%

Tags: multifamily financing, low rate apartment loans, nonrecourse loans, apartment loans
Thursday, Oct 03, 2019
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source of multifamily, arranged the $8,740,000 nonrecourse refinance loan for a town home apartment complex in Utah. The borrower’s goals were to refinance their two separate loans for Phase 1 and Phase 2 into one long term, low rate loan.

TMG submitted the loan to a trusted FNMA lender and worked to get a 30-day Streamline Rate Lock. “We were unable to close right away because the borrowers had 2% prepayment penalty that expired around the time of closing.  It was crunch time towards the end, but we got the loan closed in a timely fashion and the client secured a rate of 3.77% on a  long term loan” said Jeff Meierhofer, TMG’s Director of Finance.

Summary: 

Location:  Utah
Property:  Apartment
Loan Amount: $8,740,000
Interest Rate:  3.77%
Term:   15 Years
Amortization:   30 Years
Prepayment:  Yield Maintenance

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TMG successfully secured a co-terminus 2nd mortgage on Mixed Use property

Tags: mixed use property financing, commercial loans in Utah, commercial 2nd mortgage loans
Tuesday, Oct 01, 2019
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of commercial real estate loans, arranged the 2nd mortgage on a mixed-use project in Utah.   TMG financed the project previously with a loan that gave the borrowers the ability to pull cash out at some time in the future. 

TMG successfully secured a co-terminus 2nd mortgage on the property to give the owners the cash they needed to purchase another property.  They were able to secure the loan with a lower than typical rate on a 2nd mortgage and close in time to purchase another real estate transaction.

Summary: 

Location:  Utah
Property:  Mixed Use
Loan Amount: $1,140,000
Interest Rate:  5%
Term:   9.6 years  
Amortization:   30 Years
Prepayment:   None
LTV:   70%

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TMG arranged the $1,650,000 cash out nonrecourse refinance for a MHP

Tags: mobile home park financing, MHP loans, nonrecourse loans, cashout loans
Friday, Sep 20, 2019
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source of Mobile Home Park financing arranged the $1,650,000 cash out nonrecourse refinance for a park located in Indiana. The borrower’s goals were to get cash out to buy out a partner and make improvements to the park.  

The team at TMG worked extensively with the borrower and legal teams to mitigate title issues.  In the end the borrower received a great long term loan and low fixed rate.

Summary: 

Location:  Indiana
Property:  90 pad Mobile Home Park     
Loan Amount: $1,650,000
Interest Rate:  4.67%; 
Term:  10 Years
Amortization:   30 Years
Prepayment:   Defeasance
 

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