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TMG arranged a $2,000,000 purchase money loan for a NNN single tenant investment (dental practice)

Tags: NNN single tenant loans, Non-recourse loans, CRE financing
Friday, Mar 12, 2021
by Angela Kesselman

The Madison Group, a national source of commercial property lending, arranged a $2,000,000 purchase money loan for a repeat client on a NNN single tenant investment property located in Texas. 

The property was in the process of being remodeled for a new tenant that would be moving in at the completion of construction.  The tenant signed a long-term lease on a new location and market. The tenant is a non-credit rated dental practice. The multi-branched dental practice was recently purchased by an investment fund. 

The client came to TMG to request a non-recourse loan on this asset. The challenge was finding non-recourse financing on the building for a tenant that was not credit rated. Also, the tenant had moved into the property while construction was being completed.  TMG closed the loan quickly to facilitate the timing of a 1031 exchange.   

TMG was able to use one of our reliable Texas lenders to provide the client with the loan amount requested, while maintaining a great rate with limited recourse financing.  In addition, the loan closed in 50 days from start to finish.  The buyer received a 30-year amortization, 7-year term, and 3 years of interest only to maximize the cash flow of the asset.

 Location:  Texas

Property:  NNN single tenant building

Loan Amount: $2,000,000

Interest Rate:  3.95%

Term:   7 Years with 3 years of interest only

Amortization:   30 Years

Prepayment:   1% for first year

LTV:  65%

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