Summary: The Madison Group (TMG), a leading national
lending source for Multifamily properties, arranged the $10,400,000 refinance
for an 82 unit apartment in southern Utah. The borrower’s goals were to get a
nonrecourse loan and a fixed term that matched their other two phases of the
complex. This property is the final phase of a 3-phase project that has been
increasingly successful in this growing market.
TMG worked with the lender to fund the long-term loan within
60 days of the property becoming 90% occupied. This allowed the investor group
to take advantage of the low rates available in the market. The nonrecourse
loan provided the structure the borrowers needed. Extra effort was taken to
align the 3 projects terms for either refinancing or sale of the asset in the
future. The borrowing entity was able to recapture equity infused into the
project and get a 75% cash out loan.
Location: Utah
Property: Apartment Complex
Loan Amount: $10,400,000
Interest Rate: 3.52%
Term: 7 Years
Amortization: 30 Years
Prepayment: Yield maintenance
LTV: 75%