The Madison Group (TMG), a leading national source of owner occupied commercial real estate loans, arranged an SBA 504 loan to purchase a 63,000+ sqft manufacturing facility in Texas. The repeat client contacted TMG requesting 90% financing to purchase a manufacturing facility they occupied.
TMG quickly identified this as an SBA 504 loan opportunity and was able to arrange a 50/40/10 SBA 504 loan with an SBA 504 lender and local CDC. With the teamwork of everyone involved, we were able to close the loan before the FOMC’s September interest rate hike. It was truly a team effort, and the process required a lot of attention to detail by all parties. In the end, the borrowers were very satisfied with their 90% financing.
Location: Texas
Property: Owner Occupied manufacturing / industrial
Bank Loan: $3,095,000
Interest rate: 6.5% - 5-year fixed rate
Term: 33 years with 3 years of interest only payments
Amortization: 30 years
Prepayment: Standard SBA 504 prepayment penalty
CDC Loan: $2,476,000
Interest Rate: 5.18% - 10-year fixed rate
Term: 10 years
Amortization: 25 years
Prepayment: Standard SBA 504 prepayment penalty
LTV: 90%