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Recently Closed Loan: Mobile Home Park Refinance in Texas

Tags: mobile home park financing, park owned homes
Thursday, Mar 21, 2019
by Jeff Meierhofer

Summary:  The Madison Group (TMG), a leading source of Mobile Home Park financing nationwide, arranged the $2,500,000  refinance for a Mobile Home Park in Lindale, TX. The borrowers goals were to refinance out of their high interest rate private note and take some cash out for improvements. 

The challenge to source financing for this property was the park had 100% park owned homes. Most lenders will not utilize the income from the POH and primarily count pad rental only.

TMG, through its strong network and experience with this type of collateral, secured a loan option for the borrower with an interest rate that was suitable for this type property.  This loan increased the borrowers cash flow immensely and provided a 5 year fixed loan with a 30 year amortization. The borrower was able to get a larger loan amount with a higher LTV allowing him more cash out. 

Location: Texas
Property: Mobile Home Park
Loan Amount: $2,500,000
Interest Rate: 7%
Term: 5-Year
Amortization: 30-Year
Prepayment: 3.2.2.1.1
LTV:  77%



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10 Year Treasury

Market Update

Friday, Mar 08, 2019
by Jeff Meierhofer

The latest market research shows that the commercial real estate market is expected to stay strong throughout 2019.  Even with the Fed raising short term interest rates 4 times in 2018, it is believed that the cycle will continue with strong volume and steady cap rates.  There is continued caution that we are “late in the cycle” for asset appreciation. However, both equity and debt capital remain widely available and support an active buying market.

 

The 10-year treasury hit 3.24% in November before dropping back down to hover around 2.7% currently.  The January announcement from The Fed that they might slow the pace of future interest rate hikes is believed to be a factor in the pundits view that rates will remain fairly constant through the year.  Cap rates tend to move with increased interest rates due to the higher cost of borrowing.  This change was minimal at the end of 2018 and does not appear to have changed the 2019 market so far.

 

Commercial lending rates and programs are excellent in this window of economic stability. TMG is ready to help guide you into a loan program that fits your individual needs for your long term or short term CRE investment loans.


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Mixed Use Commercial Condo Financing

Recently Closed Loan: Mixed Use Commercial Condo in Utah

Tags: Mixed Use, Commercial Condo, Warehouse, Office, Financing, Loans
Tuesday, Mar 05, 2019
by Angela Kesselman
Summary:  The Madison Group (TMG), a leading source of commercial financing nationwide, arranged the $2,000,000 refinance of a multi-tenant mixed use property. The borrowers goals were to secure a 25-30 year amortization with best rate possible on a 10-year term with little or no prepayment penalty.  They also requested an advancing term loan to cash out of the property and invest in other assets in the future. 

Each unit is zoned “mixed use” which offers the owner a unique opportunity to live and work in the condominium. The subject property has 6 condo units within the building. Each unit offers warehouse and office space on the 1st and 2nd floor with a 1-bedroom apartment on the 3rd floor. The main level is designed to be utilized as commercial warehouse space with lofts that can be used for office space.

TMG was able to close the loan with a lender that satisfied all of the client's needs, including the ability to advance $1.8M for future needs.  

Location:  Park City UT
Property:  Warehouse Mixed Use
Loan Amount: $2,000,000
Interest Rate:  5.50% 
Term:   10 Years 
Amortization:   30 Years 
Prepayment:   None
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Student housing financing

Recently Closed Loan: Student Housing Project in Idaho

Tags: Student Housing Loans, Student Housing Finance Experts
Thursday, Feb 28, 2019
by Jeff Meierhofer
Summary:  The Madison Group (TMG), a leading source of student housing financing nationwide, arranged the $4,600,000  refinance for a student housing project.  The borrowers goals were to payoff the current construction debt and get a  long term loan.  They were looking for an aggressive rate, shorter term, and no prepayment penalty.

TMG reached out to multiple lenders to get the borrower the best pricing and loan to fit their financing goals. "We originally tried to place the loan with Fannie Mae, but ran into an issue because the property was newly constructed and it had less than one year of full occupancy. We then moved to a bank loan and worked diligently to facilitate a timely closing while being up against the holidays and short timelines," said Jeff Meierhofer, Director of Finance.  "The successful closing allowed the borrower  to payoff off his existing construction loan to move forward with another construction loan for another project. " 

Location: Idaho
Property: Student Housing
Loan Amount: $4,600,000
Interest Rate: 4.49% 
Term: 3-Year
Amortization: 30 Years 
Prepayment:  No prepayment penalty

What the experts are saying about the investment sales market in 2019

Thursday, Feb 14, 2019
by Jeff Meierhofer
As the MBA CREF/Multifamily Housing Convention & Expo 2019 continues, panelists provided an outlook for the investment sales market, discussed the issues surrounding Opportunity Zones investment and reviewed the commercial real estate industry’s progress in tackling its diversity problem. Here are some takeaways from Tuesday’s sessions.  Read more to learn what the investors are saying and how it may effect your commercial investment strategy.

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