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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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The Madison Group Arranges $1,700,000 Loan for a Multifamily HAP Housing Project in Utah

Tuesday, Jun 27, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged a $1,700,000 loan for the purchase of an apartment complex in Ogden Utah.  The borrower’s goal was to purchase his first multifamily property with a long term fixed rate and put down only 25%. TMG secured the financing with a 10 year fixed rate of 4.64% and a 25 year amortization.

The property is comprised of 15 two-bedroom townhome-style units and 5 two-bedroom apartment units.  The property was built in the 1980s and is located in a strong tenant market with a consistent full occupancy and a waiting list.   It has always been operated as a HAP housing project and has a newly signed 5-year HAP Section 8 contract.  The buyer has not owned or operated a multifamily project with housing assistance, but does have experience with 4-plex properties with assistance.  He was coming out of 1031 exchange and wanted to use these funds for the down payment.

Since the borrower did not have experience with multifamily or a larger HAP housing projects, the financing was more difficult to find.  TMG was able to engage a local credit union to fund the transaction.  They were comfortable with the stability of the project and felt that with an experienced professional management company, the property would perform well.  They offered a full 75% LTV purchase financing as long as the borrower guaranteed the loan.  

“Typically, lenders are conservative with first time buyers of multifamily, and this transaction was complicated even more because of the HAP component.  Our client was able to get maximum leverage on the transaction, and an excellent interest rate. –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 $1,160,000 Refinance for an Office Building

Tuesday, Jun 27, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of office financing nationwide, arranged the $1,160,000 loan for the refinance of a two story office in Santa Barbara. The borrower had recently purchase the building using an interim loan.  He had short timeline on a 1031 exchange and needed to close in three weeks, so a bridge loan was used to secure the transaction. The finalized terms of this new loan was 4.5% interest rate with a 15 year term and 15 year amortization.


This Class A single-tenant office building is 100% NNN leased. The borrowers used a quick bridge loan to purchase this asset in the beginning of 2017. They were able to act quickly to secure the asset and then look for long term financing. The low LTV allowed for a flexible lender to come in and provide a “makes sense deal” and commit to a loan that satisfied the borrower’s needs.  


“The borrowers did not want to have to refinance the asset again. We used a trusted source to provide a fixed rate to match the amortization to meet their retirement goals,” 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 closes a $2,100,000 refinance for a Retail Center in Utah

Monday, Jun 05, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of retail financing nationwide, arranged the $2,128,000 rate and term refinance for a retail strip center in Riverdale Utah. The property consists of 4 retail units with NNN leases. The borrower was interested in maximum cash flow from the asset. The finalized terms of this loan were 4.95% interest rate, 10 year term, and a 25 year amortization with no prepayment penalty. 

The property was purchased by two out of state investors (LLCs) ten years ago.  Both owners are retired and are looking to continue to receive maximum cash flow from the property.  They were seeking the longest terms possible with an aggressive rate. They previously had a 10 year interest only loan when they purchased it 10 years ago. They were seeking a loan that provided some flexibility in the future if they decided to sell the asset - so a no prepay penalty loan was the best structure to meet their goals.

The retail center was built in 2006 and is located in a great location north of Salt Lake City.  It has 9582 gross leasable SF and has four NNN leases with quality tenants.   The tenants include Verizon and Check City.

The loan that needed to be paid off was a CMBS transaction. It had a very narrow window for payoff and it was necessary to have the loan fund during a specific time. Also, there was some lease exposure with leases coming due within the next two years. By using the excellent quality of the borrowers and the asset, TMG was able to secure a 10 year fixed product.

“The borrowers needed more loan flexibility because they did not know what their future investment plans would hold. So getting the maximum cash flow and the ability to prepay early fit their financial goals.” –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.
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