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%