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Self Storage Financing

TMG arranged the $6MM refinance for 3 storage facilities

Tags: self storage financing, ministorage loans, self storage facility loans, commercial loans
Friday, Dec 11, 2020
by Jeff M

Summary:  The Madison Group (TMG), a leading national lending source of Self-Storage financing arranged the $6,422,200 refinance for 3 storage facilities in Nevada.

The borrower’s primary goal was to combine three separate self-storage stores in the same market into one loan. Underwriting was complicated due to one of the properties being recently completed and only at 70% occupancy. The borrower’s wanted to lower the current interest rates for loans that were maturing soon and lock in a low rate for 10 years. The 30-year amortization loan with a fixed term of 10 years at 4.095% and no prepay met the borrower’s long term investment strategy.

TMG worked painstakingly with the lender and underwriting to provide data and updates on income and the market conditions. This was an incredibly challenging loan due to the complexity of the properties combined occupancy and 12- month trailing income. The borrower, being a professional investor, stayed patient and calm during delays of 3rd party reports and unfortunate pandemic delays. Closing in December ahead of year end was a great gift for all parties involved and the borrower is truly satisfied. 

Location:  Nevada

Property:  Self-Storage facilities

Loan Amount: $6,422,200

Interest Rate:  4.095%

Term:  15 (10+5) Years

Amortization:   30 Years

Prepayment:   None

LTV:   60%

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