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The Madison Group arranges $1,900,000 cash out refinance for Country Living Estates

Tuesday, Sep 26, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of Mobile Home Park financing nationwide, arranged the $1,900,000 cash out refinance for a mobile home park in Siler City, N.C. The Country Living Estates MHP consists of 147 pads on 53.6 acres. The borrower was interested in a longer amortization loan with a fixed rate of 7 to 10 years. The finalized terms of this loan were 4.23% interest rate, 10-year term, and a 30-year amortization. 


The borrowers continuously upgraded this property during their 10 years of ownership.  They sought to return capital infused into the park and cash out for continued updates to the mobile home park.  Based on net operating income of approximately $250,000 and an 8 percent cap rate, the current value of the property is in excess of $3 million. The borrowers were able to utilize the new higher value to achieve their financial goals.


The property is located west of Raleigh and south of Greensboro at U.S. Highways 64 and 421.  It consists of 147 mobile home pads of 10,000 square feet each, which all can accommodate double-wide homes.  Most mobile home parks in the immediate area are single-wide parks.  Currently the park is 100 percent occupied.

    

A nonrecourse loan was needed based on the underlying ownership of the property. Great care was taken by the lender and the borrower to provide proper documentation for the ownership by the revocable trust. When the park was purchased, many of the homes were rental units. Over the years, individuals who rented became owners of those mobile homes and title to the units had changed. It was necessary to change the title on individual units to finalize this transaction.


TMG’s processing staff worked diligently with the legal departments for the lender and the borrower, and was able to facilitate title changes with the Department of Motor Vehicles. This solved what seemed like an insurmountable hurdle with underwriting. By doing so, the borrower was able to achieve the desired cash out and a long-term nonrecourse loan with an excellent rate.


Sometimes processing has to go the extra mile to make something work and to solve the really hard issues. It took a lot of patience from the borrower, lender and all parties involved. But in the end, the borrower is very pleased.” said Jeff Meierhofer, TMG’s Director of Finance.

The financing was arranged by Jeff Meierhofer 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-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.

The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.

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The Madison Group Arranges Financing for Industrial Building Purchase in Utah

Wednesday, Sep 20, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of industrial financing nationwide, arranged a loan of $550,000 for the purchase of an industrial building in Utah. The borrower needed a quick close to take down the property. The finalized terms of this loan were 6.50% interest rate, 5/1 ARM, and a 30-year amortization. 

This 8,000 square foot office/industrial building, located in West Valley City, was recently finished. It has the capacity to add a second floor for additional offices, central air, and is wired for cable. It is fully fenced with a high-security fence and gate.

The loan had two challenges of a small loan amount and having a short deadline to close. Also the borrower was located in California making it difficult to get signed loan package in a timely manner. TMG worked directly and effectively with the appraiser, lender, title, and the borrower to get the loan closed in less than 30 days.

Quote from borrower or loan officer.

“Most commercial transactions take 60 – 90 days to close, but our team rallied to get the loan closed to meet the PSA deadline”, said Jeff Meierhofer, TMG’s Director of Finance.

The financing was arranged by Jeff Meierhofer 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-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.

The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com

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The Madison Group Arranges $3,650,000 Loan for a Multifamily Property in CA

Tuesday, Sep 19, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $3,650,000 refinance of a 22 unit apartment building in San Francisco CA.  The borrower’s goals were to secure a low rate and get cash out of the property for another investment. TMG secured the financing with a 10 year term fixed for 5 years at 3.925% with a 30 year amortization and no prepayment penalty.

The building was built in 1908, but remodeled in 2008-2010.It is a full leased multifamily property with one commercial tenant in the Mission District of San Francisco. The borrower is an experienced real estate investor.  He had a need for a large amount of cash out of this property to invest in another project but needed flexibility on the prepayment penalty.  

TMG was able to close the loan quickly and efficiently, minimize the third party reports, and give the borrower all of the terms that he had desired on the loan.  The new loan provided a substantial amount of cash out, even with a tight debt service coverage.  

The borrower commented, “Angela Kesselman is a dream to work with and the deals she puts forth are the best - two in a row!”

“This repeat client came to us with a specific need and we were able to get negotiate all of the terms that were part of his financial plan.   This was another successful closing for a great client” 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-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.

The Madison Group can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.


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The Madison Group Arranges $3,300,000 loan for an Office Warehouse in Utah

Monday, Jul 17, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of warehouse financing nationwide, arranged the $3,300,000 refinance of an industrial property in Kaysville, Utah.  The borrower’s goals were to refinance a balloon note that was coming due and recapitalize funds for property repairs.  TMG secured the financing with a 10-year fixed rate of 4.5% and a 30-year amortization at 75% LTV.

The property is a 59,064 square foot multi-tenant flex building.  It is 18 years old and has 9 units on 3.8 acres.   The property experienced some vacancies over a 3-year period after a large tenant downsized their space.  It took through the 3rd quarter of 2016 to break the space up and find appropriate tenants.  As of April 2017, the building is 100% occupied.  

The historical net operating income for the property did not underwrite to the loan amount needed for the refinance.  Just prior to hitting the 100% occupancy numbers, TMG brought in a lender that understood the history of the property and was able to underwrite off of the new rent roll.

By sourcing the best lender and loan product for the client’s financing goal, TMG was able to get a 75% cash out loan with a 30-year amortization.  The new loan allowed the sponsor to refinance the existing debt, put some money aside for future capital improvements, and get cash back to recapitalize out of pocket funds used during the high vacancy periods.  In addition, the borrowers lowered their monthly payments and increased the cash flow for this retired real estate owner.  

We worked diligently over many months to make sure the borrower was in the right position to get the best loan possible for the situation.  It was a very successful transaction for the owner, who relies on this income for retirement,” 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 recapitalizations 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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The Madison Group Arranges $2,450,000 loan for a MHP purchase in Colorado

Tuesday, Jun 27, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of mobile home park financing nationwide, arranged the $2,450,000 purchase financing for a mobile home park located in Fort Collins, CO.  The borrower’s goals were to purchase the property with maximum leverage with the best available rate.  TMG secured the financing with a 7 year fixed rate of 4.625% and a 25 year amortization at 75% LTV.

The 4 borrowers on the transaction are located in Seattle, WA but have extensive experience with mobile home communities. They purchased this manufactured housing community with 63 pads (50 mobile home spaces, 11 RV spaces and 2 residential duplex spaces). The property is an older park developed in the 50s and 60s, but is well located and is typically 100% occupied.  

The buyers came to TMG after pursuing a CMBS loan.  They felt that the loan covenants were too restrictive on the securitized loan, and they wanted a more customized loan with some flexibility.  They also had a very short closing deadline.  TMG was able to utilize the third party reports from the previous lender and save the buyers thousands of dollars.  The borrowers met their goals of a structured loan that had full proceeds, a long term fixed rate, and a much less onerous prepayment penalty.  TMG negotiated and closed the loan within two weeks of getting the go ahead to proceed with the loan.   

“The buyers came to us after a very dissatisfying experience with another lender.  We put together a financing package that worked for them and closed within the two week contractual PSA deadline.  The buyers were able to close on time, with an excellent loan that met their specific needs,” 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-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.
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