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Multifamily Financing

The Madison Group secured the $10MM nonrecourse cash out refinance for an apartment in Utah

Tags: nonrecourse loans, apartment loans, cashout loans, multifamily refinance, Utah Apartment loans, Nationwide lending for CRE
Tuesday, Jul 06, 2021
by Jeff Meierhofer

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%



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