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TMG arranged the $1MM refinance for a 14-unit multifamily property in Utah

Tags: apartment financing, multifamily loans, nonrecourse, cash out loans
Friday, Feb 05, 2021
by Brandi Link

Summary:  The Madison Group (TMG), a leading national lending source for multifamily financing arranged the $1,014,000 refinance for a 14-unit multifamily property in southern Utah.

The borrower’s goals were to refinance his current loan to take advantage of the low interest and get some cash out to do some minor repairs on the property.  

There were unforeseen circumstances that caused delay in getting the loan closed. TMG secured a FNMA Lender with a low rate of 3.99% on a 12/30 with no recourse to the borrowing entity. The borrower was very satisfied with the lower rate and increased cash flow on this long-term fixed loan. Additionally, the borrower was pleased with the loan process facilitated by TMG, the professionalism of the lender, and overall execution of the transaction.

Location:  Utah 

Property:  Apartment Building

Loan Amount: $ 1,014,000

Interest Rate:  3.99%

Term:   12 Years

Amortization:   30 Years

Prepayment:  Yield Maintenance  

LTV:   65%

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The Madison Group secures the $5.95M purchase money loan on an RV Park in Wyoming

Tags: RV Park Financing, Nonrecourse loans for RV Parks, Cashout
Thursday, Feb 04, 2021
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of RV Park financing secures the $5.95M purchase money loan on an RV Park near a national park in Wyoming.

The RV Park is a transient park located near the entrance to Yellowstone.  The client had a lease option on the park for many years and wanted to move forward with the purchase.  He had invested a large sum of capital into capital improvements while leasing the property.  The value of the park had increased dramatically during the lease option period, and the buyer needed to make sure he secured the contract and finalized the purchase.

The borrower wanted to secure financing that would give him a low rate but also give him the opportunity to get some of his capital back out of the transaction.  TMG was able to structure a purchase financing that offered a long-term low rate and gave the buyer a significant amount of cash back at closing. 

Location:  Wyoming

Property:  RV Park

Loan Amount: $ 4,950,000

Interest Rate: 3.6 % fixed for 10 years

Term:   10 Years

Amortization:  25 Years

Prepayment:   5% declining

LTV:  65 %

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TMG arranged the $1,805,000 purchase financing for a 61-unit apartment complex in Texas

Tags: Multifamily financing, Apartment loans, nonrecourse loans, Cash out loans
Thursday, Jan 28, 2021
by Angela Kesselman

The Madison Group (TMG), a leading national lending source for multifamily properties, arranged the $1,805,000 purchase financing for a 61-unit apartment complex in South Texas.

The buyer recently sold a smaller multifamily property and needed to find a replacement for his 1031 funds.  He was able to identity an apartment complex in south Texas that was in good condition, had positive cash flow, and was selling at a reasonable cap rate.  The buyer needed to close in a timely manner for his 1031 and was interested in an agency loan.  He also wanted to have a flexible prepay, so he would be able to pull his cash out of this property and reinvest in the next 5 years. 

TMG went to their preferred lenders and found a Freddie Mac agency loan that granted a waiver for ownership. They were able to secure financing terms with a 5-year fixed rate loan, floating for 15 years, 20-year term, a 30 year amortization, along with a step down prepayment penalty.  The loan closed in a timely manner to meet his 1031 timelines.

Location:  Texas

Property:  Multifamily

Loan Amount: $ 1,805,000

Interest Rate:  3.95%

Term:   20 Years fixed for first 5 years

Amortization:  30  Years

Prepayment:   3/2/1/1/1%

LTV:  65 %

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TMG arranged the $1,700,000 cash out refinance for a 100-unit MHP in Ohio

Tags: Mobile Home Park financing, MHC loans, MHP refinance, Cash out
Thursday, Jan 21, 2021
by Paul Kuster

Summary:  The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $1,700,000 refinance for a 100-unit MHP in Ohio.  The final terms were a 10-year fixed term with the first-year interest only, 30-year amortization, with a rate of 3.50%.  The loan is nonrecourse and the borrower received cash out from the transaction.

The borrower’s goals were to refinance out of the existing high rate seller financing debt with a new nonrecourse loan and take cash out for reserves and other business uses.

The borrowers were out of state owners and operate a business full time in their state of primary residence.  TMG was able to work with the Lender and borrowers at mutually convenient times to process and close the loan in a reasonable time frame.

Location:  Ohio

Property:  Mobile Home Park

Loan Amount: $1,700,000

Interest Rate:  3.50%, interest only for the first year

Term:   10 Years

Amortization:  30 Years

Prepayment:   Yield Maintenance

LTV:   55%

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The Madison Group arranged the $5,800,000 refinance of a 200-pad park in Oklahoma

Tags: Mobile Home Park Financing, MHC loans, Nonrecourse loans, Cash out loans
Wednesday, Jan 20, 2021
by Angela

The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $5,800,000 refinance of a 200-pad park in Oklahoma. 

The mobile home community is in a good area of Tulsa with easy access to the freeway.  It has excellent infrastructure, including concrete roads and driveways.  The owner purchased the park several years ago and has been increasing the quality of the park and tenants since the purchase. 

This long-time client came to TMG to request a lower rate and a new loan with interest only payments.  The occupancy was too low for agency lenders in this market, so TMG successfully placed the loan with a private label securitization group.

Taking the loan to securitization allowed the borrower to get the needed proceeds without stiff COVID-19 reserves while lowering the rate significantly and getting 5 years of interest only on this transaction. 

Location:  Oklahoma

Property:  200 pad Mobile Home Park

Loan Amount: $ 5,800,000

Interest Rate:  3.9%

Term:  10 Years with 5 years of interest only

Amortization:   30 Years

Prepayment:   Defeasance

LTV:   70%

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