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Student Housing Lending

Successful closing of a $1,330,000 loan for a Student Housing Property in Idaho

Wednesday, Apr 04, 2018
by Angela

The Madison Group (TMG), arranged the $1,330,000 cash out refinance of a student housing property in Idaho.  The experienced owners are a repeat client of TMG.  They own and operate multiple commercial properties.  The borrower’s goals were to get a significant amount of cash out with a quick closing. TMG secured the financing with a 10-year fixed rate of 4.95% and a 30-year amortization at 75% loan-to-value ratio.

The property is in a prime location near Brigham Young University - Idaho and is fully occupied.  The student housing facility is a 17,581-square-foot apartment complex with 16 townhome units housing 64 students. Each unit has two bedrooms and one bathroom with the bedrooms and bathroom on the second floor.  A manager’s home is also on the property.  Five of the units have been fully remodeled in the past year, and new siding and new roofs have been installed.

The loan needed to close quickly to allow the borrower to obtain capital to invest into another project.  TMG also was able to overcome the difficulty of getting a cash out loan on a student housing project in a small metro area with limited lenders.

We were able to get a local lender to close the loan quickly within the desired timeframe,” said Angela Kesselman, TMG’s associate director of Finance.  “The borrower’s financials were complicated so our lender agreed to underwrite them quickly,” she added.  “Third parties were also expedited to meet the tight close time. We were able to satisfy the owner’s needs with a good rate, flexible prepayment penalty, and the cash that allowed him to invest in another project,” said Kesselman.

The financing was arranged by Angela Kesselman at The Madison Group.

The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including:  multifamily and student housing, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States.  Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital.  TMG works efficiently and effectively to get the transaction closed and funded.

The Madison Group can be reached at 435-785-8350 or by emailing Kesselman at angela@madisongroupfunding.com.



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