Student Housing Financing
The Madison Group (TMG), a leading source of financing for student
housing nationwide, arranged the $2,600,000 refinance for a 9-building
student housing project in northern Utah. The borrower was interested in
maximum long term cash flow and an aggressive fixed rate. The finalized terms
of this loan were 5.04% interest rate, 12-year term, and a 30-year
amortization.
The refinance is
for nine buildings with a total of 27, 3-bedroom units. The buildings, which were
newly constructed between 2015-2017, are in a great location, close to schools
and commerce. The rental market in the Logan,
Utah area has been, and continues to be very strong. The housing units have
been upgraded and are 100% occupied.
As this is Phase
1 of the property and Phase 2 will be built adjacent to it, the necessary
access and easements needed to be secured. A clubhouse will be built during Phase
2 and it was necessary to get the lender and underwriter to allow funding
before the amenities were completed.
TMG worked with the
title company, the legal professionals and the lender to secure acceptable
easements between Phase 1 and 2. The
lender did not take title to the phase 2 land, which allows the borrower to
build with a lender of the borrower’s choosing.
“Securing the financing took longer than expected,” said Jeff
Meierhofer, TMG’s Director of Finance. “In
my next life I may consider being an attorney so I can get legal documents
faster! But all parties stayed focused and the borrower got a great rate fixed
for 12 years.”
The financing was arranged by Jeff Meierhofer at
The Madison Group. 435-785-8350