Nonrecourse Commercial Loans with our extensive network of lenders




Get loan options

Tell us what you want to achieve









Nonrecourse Commercial Loans over $1,000,000

The Madison Group is partnered with a diverse group of lenders including commercial banks, life insurance companies, CMBS and local banks. Our strong relationships with these lenders enable us to maintain a healthy variety of nonrecourse loan products and terms. Our clients benefit from competitive rates that will provide you with the most suitable commercial loans to help preserve your working capital.  A nonrecourse loan may be the best loan structure to meet your goals.

A nonrecourse loan is a mortgage agreement in which the collateral securing a loan is the sole source of repayment.  The lender can’t hold the borrower or guarantors liable in the event of a default. The lender can seize and sell the property but can’t seize non-pledged property or assets from the borrower. This type of financing is typically found on longer term, permanent commercial real estate loans placed on a stabilized and performing asset.

Some Pros and Cons for Nonrecourse Commercial Loans

Pros

Cons

No personal liability (except bad boy carve-out)

   Defeasance or yield maintenance

Longer amortizations & terms

Higher costs to close

Assumable to a new owner

Reserves for TI & LC

High LTV

Limited to certain commercial lenders

Certainty of closing

Escrow and impound accounts for taxes & insurance


At the Madison Group, we offer a wide range of commercial real estate financing options for investor and owner-user properties nationwide.

Nonrecourse commercial real estate loans can be used for commercial investments such as shopping centers, medical offices, office buildings, retail centers, industrial and warehouse, self storage, multi-family, and flagged hotels, to name a few. They may be used for acquisition or refinancing of a commercial real estate.  

General Nonrecourse Lending Parameters

Limits

$1,000,000 minimum

Rates

Competitive spreads over the 5-year and 10-year swap

Terms

5, 10, 15 and 30-year rate terms 

Amortization

25 to 35-year amortization 

Recourse

Nonrecourse (subject to standard carve-outs)

DSC Range

1.03 to 1.35 with a 1.20 DSC on average

LTV Limits

80% LTV/LTC maximum – 85% with mezzanine financing

Debt Yield

7% Debt Yield – depending upon quality of the asset

Property types

Apartments & Mobile Home Parks (Multi-family properties), Retail, Office, Industrial, Self-Storage, Hospitality, Industrial, Single Tenant, Credit Tenant

Geographic areas

Nationwide

How you benefit from working with TMG:

  • Create greater cash flow and save time sourcing rates and terms that increase your cash flow
  • We fully analyze your transaction so you avoid pitfalls and costly surprises
  • Receive offers from more than one source
  • Accessing multiple lending programs/institutions/lenders for financing options that fit your needs
  • Assistance every step of the way with our team of experienced commercial real estate lending professionals

Nonrecourse Loan Closings and News

$1,767,000 Apartment.jpg
Wisconsin.PNG
Fed Ex Closed Loan.jpg
regional grocery.jpg

The Madison Group Arranges
$1,767,000 for Apartment
Refinance in Utah Read More


$4,500,000 Non-recourse Loan
for an Industrial Building in
Wisconsin Read More

$4,600,000 Purchase
Financing for a Credit Tenant
Property Read More


$3MM refinance of regional
grocery Read More

Call us today!
  435-785-8350