The Madison Group (TMG), a leading national lending source for
multifamily properties, arranged the $1,805,000 purchase financing for a 61-unit
apartment complex in South Texas.
The buyer recently sold a smaller multifamily property and
needed to find a replacement for his 1031 funds. He was able to identity an apartment complex in
south Texas that was in good condition, had positive cash flow, and was selling
at a reasonable cap rate. The buyer
needed to close in a timely manner for his 1031 and was interested in an agency
loan. He also wanted to have a flexible
prepay, so he would be able to pull his cash out of this property and reinvest
in the next 5 years.
TMG went to their preferred lenders and found a Freddie Mac
agency loan that granted a waiver for ownership. They were able to secure
financing terms with a 5-year fixed rate loan, floating for 15 years, 20-year
term, a 30 year amortization, along with a step down prepayment penalty. The loan closed in a timely manner to meet
his 1031 timelines.
Loan Amount: $ 1,805,000
Interest Rate: 3.95%
Term: 20 Years fixed
for first 5 years
Amortization: 30 Years
LTV: 65 %