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TMG arranged the $1,805,000 purchase financing for a 61-unit apartment complex in Texas

Tags: Multifamily financing, Apartment loans, nonrecourse loans, Cash out loans
Thursday, Jan 28, 2021
by Angela Kesselman

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.

Location:  Texas

Property:  Multifamily

Loan Amount: $ 1,805,000

Interest Rate:  3.95%

Term:   20 Years fixed for first 5 years

Amortization:  30  Years

Prepayment:   3/2/1/1/1%

LTV:  65 %

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