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TMG arranged a $8.5MM purchase and renovation financing for a 112-unit apartment complex in Utah

Tags: apartment loans, nonrecourse, multifamily financing, renovation
Thursday, Apr 08, 2021
by Barb

The Madison Group (TMG), a leading national lending source for multifamily finance, arranged the $8,500,000 purchase and renovation financing for a 112-unit apartment complex located in metro Utah. 

The borrower, an investment group, was looking for a financing facility to purchase a 112-unit apartment complex in Salt Lake City, UT.  The request needed to include significant construction dollars to renovate about 30% of the complex due to fire damage. The desired terms included 75% LTV and needed to be nonrecourse.  The borrower has multiple lending relationships in the market but asked The Madison Group to bring them competitive offers that their existing relationships could not provide.  TMG was able to source nonrecourse purchase/construction financing in a bridge product to allow the borrower to take down the property, renovate the non-preforming units, stabilize, and then allow for a refinance into agency or other traditional perm debt in the future.  TMG walked the borrower through a very comprehensive origination process with its in house processing team and closed the deal on time and at the terms originally quoted.

Location:  UT

Property:  Apartment Complex

Loan Amount: $8,500,000

Interest Rate:  4.50%

Term:   2 Years

Prepayment:   1% unless refinanced with agency debt

LTV:   75%

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