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TMG arranged a $8.5MM purchase and renovation financing for a 112-unit apartment complex in Utah

Tags: apartment loans, nonrecourse, multifamily financing, renovation
Thursday, Apr 08, 2021
by Barb

The Madison Group (TMG), a leading national lending source for multifamily finance, arranged the $8,500,000 purchase and renovation financing for a 112-unit apartment complex located in metro Utah. 

The borrower, an investment group, was looking for a financing facility to purchase a 112-unit apartment complex in Salt Lake City, UT.  The request needed to include significant construction dollars to renovate about 30% of the complex due to fire damage. The desired terms included 75% LTV and needed to be nonrecourse.  The borrower has multiple lending relationships in the market but asked The Madison Group to bring them competitive offers that their existing relationships could not provide.  TMG was able to source nonrecourse purchase/construction financing in a bridge product to allow the borrower to take down the property, renovate the non-preforming units, stabilize, and then allow for a refinance into agency or other traditional perm debt in the future.  TMG walked the borrower through a very comprehensive origination process with its in house processing team and closed the deal on time and at the terms originally quoted.

Location:  UT

Property:  Apartment Complex

Loan Amount: $8,500,000

Interest Rate:  4.50%

Term:   2 Years

Prepayment:   1% unless refinanced with agency debt

LTV:   75%

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TMG arranged the $5.6MM cash out refinance of a MHP in Kansas

Tags: Mobile Home Park Financing, MHC loans, Cashout loans
Saturday, Mar 20, 2021
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of mobile home parks, arranged the $5.6MM cash out refinance of a family park in Kansas. The property was purchased by the client two years ago.  It is in a growing area and has excellent curb appeal.

The borrower’s goals were to refinance the higher rate first mortgage and get a lower rate to increase cash flow. TMG was able to secure 3 years of interest only payments and cash out of the project to receive some investment capital for use on other projects. This will increase the borrower’s investment yield.

TMG worked with one of their agency lenders to secure the borrower’s request.  The expenses on this park run lower than market, so we worked with the lender to underwrite it with the lower in place expenses to maximize the dollars.  The loan closed with a $5.6M loan fixed for 10 years, 30-year amortization, and 3 years of interest only. The borrowers benefit from a cash out non-recourse long term loan.

Location: Kansas

Property:  175 pad Mobile Home Park

Loan Amount: $5.6MM

Interest Rate:  4.25%

Term:  10 Years with 3 years of Interest Only

Amortization:   30 Years

Prepayment:   Yield maintenance

Recourse:  None

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TMG arranged a $2,000,000 purchase money loan for a NNN single tenant investment (dental practice)

Tags: NNN single tenant loans, Non-recourse loans, CRE financing
Friday, Mar 12, 2021
by Angela Kesselman

The Madison Group, a national source of commercial property lending, arranged a $2,000,000 purchase money loan for a repeat client on a NNN single tenant investment property located in Texas. 

The property was in the process of being remodeled for a new tenant that would be moving in at the completion of construction.  The tenant signed a long-term lease on a new location and market. The tenant is a non-credit rated dental practice. The multi-branched dental practice was recently purchased by an investment fund. 

The client came to TMG to request a non-recourse loan on this asset. The challenge was finding non-recourse financing on the building for a tenant that was not credit rated. Also, the tenant had moved into the property while construction was being completed.  TMG closed the loan quickly to facilitate the timing of a 1031 exchange.   

TMG was able to use one of our reliable Texas lenders to provide the client with the loan amount requested, while maintaining a great rate with limited recourse financing.  In addition, the loan closed in 50 days from start to finish.  The buyer received a 30-year amortization, 7-year term, and 3 years of interest only to maximize the cash flow of the asset.

 Location:  Texas

Property:  NNN single tenant building

Loan Amount: $2,000,000

Interest Rate:  3.95%

Term:   7 Years with 3 years of interest only

Amortization:   30 Years

Prepayment:   1% for first year

LTV:  65%


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TMG closes a $3MM Townhome refinance in Utah

Tags: multifamily financing, Townhome loans, Construction to Perm loans
Thursday, Mar 11, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for multifamily finance, arranged the $3,000,000 refinance for a 20-unit multifamily townhome project in Utah. 

The borrower had initially financed the phased project with hard money and needed a creative structure to refinance the expensive money while accomplishing his goals for long term financing of the project.  TMG sourced a lender that was able to structure permanent financing on a one-time close despite five units needing completion.  The lender closed the deal, locked in the long-term rate, and allowed multiple draws; one to take out the debt on the stabilized units and a final one when the remaining units are completed and fully leased.  This structure allowed the client to fully fund the project at an excellent fixed rate despite the project needing final completion.   

Location:  Utah

Property:    Townhomes

Loan Amount: $3,000,000

Interest Rate:  3.75%

Term:   5 Years; 6 months I/O

Amortization:   30 Years

Prepayment:   None

LTV:   ~60%

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$1.2MM Nonrecourse Refinance of a 66 pad MHP in Washington

Tags: MHP financing, MHC loans, Nonrecourse loans
Thursday, Mar 04, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a leading national lending source for Mobile Home Parks, arranged the $1.238M refinance of a 66 pad MHP in Washington. 

The property is in a rural community in eastern Washington.  It is a nicely appointed park with excellent street appeal. A challenge to obtaining financing was that the park has its own water and septic systems throughout the park.  The buyer, an experienced owner, became comfortable with the water and septic systems and decided to buy the property with his 1031 funds, after a difficult search for a replacement property.

The borrower’s goals were to put non-recourse financing in place.  He did not have time to finalize the long term loan within the time the of the 1031 deadline. TMG suggested a quick closing with seller financing.  After the close, TMG secured a rate and term financing of the seller note with an FNMA agency loan.

TMG was able to work through all of the property issues and secure long term non-recourse financing on the property with 5 years of interest only. 

Location:  Washington

Property:  66 pad Mobile Home Park

Loan Amount: $1,238,000

Interest Rate: 4.05 %

Term:  10 Years

Amortization:  30 Years

Prepayment:   Yield Maintenance

LTV:   65%
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