The Madison Group (TMG), arranged the $12.4M purchase of a
NNN medical facility outside of Austin Texas.
The buyer’s goals were to secure a non-recourse loan on this
asset while using 1031 proceeds for the purchase. The tenant is a local physician who owns
several facilities in the market but is not a credit tenant. TMG was able to close the loan well in
advance of the 1031 and contract deadlines.
The final loan terms were a 30 year amortization and a 7
year call on the transaction with 3 years of interest only payments at a rate
of 3.88%. TMG was able to accommodate the
buyers desire to be able to have the option to sell in year 5-7 without a
prepayment penalty.
Location: Texas
Property: Family
Hospital with full functionality of traditional hospital
Loan Amount: $ 7,440,000
Interest Rate: 3.88%
Term: 7 Years
Amortization: 30 Years
Prepayment: Swap for
5 years, then open prepay
LTV: 60 %