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Successful Closing - $20,700,000 Bridge Loan for a Medical Center in Utah

Thursday, Aug 16, 2018
by Jeff Meierhofer

The Madison Group (TMG), a leading source of commercial real estate financing nationwide, arranged the $20,700,000 bridge loan for a triple net lease medical office in Utah. The property consists of a 44,594 square-foot medical center with 8 units well located in the Salt Lake City metro area.  The finalized terms of the bridge loan were interest-only payments for the first 12 months at 425 basis points over the 30-day LIBOR (London Inter-bank Offered Rate). The property owners were able to achieve a 94% loan-to-cost loan.  

A credit tenant (BBB- credit grade) currently owns the businesses in four of the units and has signed a 15-year lease on each of these.  The investment group needed a rate and term refinance of the construction loan to meet their loan maturity date. TMG was able to fund the loan within days of the deadline on this multi-tenant medical facility.

The tenants began taking occupancy in February 2018. The goal of the transaction was to pay off the construction loan by using the current in-place leases, while taking the time necessary to finish tenant improvements and move to stabilization of the net operating income for a future long term non-recourse loan.  Three of the tenants have not yet finished the improvements in their space and one space is vacant.

The timelines for completion of the construction on the project were longer than expected due to architectural changes to the plans, which created a need to close before final leases began. TMG worked closely with the lender to maximize proceeds to pay off underlying construction debt and some return of capital to the owners. TMG and the developer worked with the building owner and tenants to provide a high loan-to-cost loan and a 72% LTV.  

 Everyone needed to be on board to get the transaction completed in a timely manner,” said Jeff Meierhofer, TMG’s Director of Finance.  “We look forward to getting a new cash-out loan for them upon final occupancy.

“There were lots of moving parts on this transaction, but we were able to deliver an excellent product to the investors,” said Angela Kesselman, TMG’s Associate Director of Finance.  “Because three of the tenants had not finished their space, the project became ineligible for a Commercial Mortgage-backed Securities transaction.  Once the tenants move in, we can finalize the transaction with long-term CMBS financing and recapitalize the project.  The bridge loan was a perfect way to achieve everyone’s long-term goals, ”Kesselman said.

The financing was arranged by Jeff Meierhofer and Angela Kesselman 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

Kesselman can be reached at 435-659-2200 or by e-mail at

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