Back to the full list of closings

news photo

TMG Arranges $8,680,000 Non-recourse Loan for Utah Apartment Complex

Tags: non-recourse loans, Cashout loans, Multifamily Financing
Monday, Aug 06, 2018
by Jeff Meierhofer

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $8,680,000 non-recourse refinance for an apartment complex in Hurricane, Utah. The borrower was interested in a non-recourse loan that allowed for cash out and recapture of cash infused into Phase 1. All equity recaptured from Phase 1 will go into the building of Phase 2. The finalized terms of this loan were 5.05% interest rate, 12-year term, and a 30-year amortization. 

The property is a recently completed 84-unit apartment community with a resort-style feel. The lease up was very fast as a gap exists for quality product in this market. Final leases have been signed on 82 of the 84 units.  The property combines the convenience of modern day living in a tranquil, quiet setting.  This apartment community features one-, two- and three-bedroom units with an amenity package well above anything else offered in Hurricane or the surrounding area.  Hurricane is in the St. George sub-market.

The total project will be a 192-unit, multi-family development consisting of two phases. The first phase, which was recently completed, includes 84 units with a pool and other amenities. The second phase is composed of 108 additional units. The project has had tremendous success in getting the first phase leased up so far. The Southern Utah market has a serious need for multi-family units.

Considering the current success in pre-leasing the property and feeling the demand was greater than expected, the borrowers are looking to move into Phase 2 construction as soon as reasonable. 

The timing of the cash out loan on Phase 1 was critical to recapitalize and move forward with Phase 2.  Special attention was paid to inter-property agreements and easements. Phase 2 is being built by the same builder and is owned by the same groups. The loan funded 90 days after the property achieved 90% occupancy.

Timing is everything in most cases, said Jeff Meierhofer, TMG’s Director of Finance. “The funds for the refinance helped the developers get moving on Phase 2 without delay saving money on construction costs.

The financing was arranged by Jeff Meierhofer at The Madison Group.

The Madison Group ( 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, 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 and Meierhofer can be reached at 435-785-8350 or by e-mailing Jeff at

Full List of Recent Closings