Back to the full list of closings

news photo

The Madison Group arranged $11.9MM arranged construction financing for a Self Storage and RV Park project

Tags: Self Storage Financing, RV Park Financing, Commercial Loans
Friday, Oct 01, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for Self Storage and RV Park lending, arranged the combined $11,900,000 construction financing for a Self Storage and RV Park in Layton UT. 

This unique property located in Layton UT near Hill Air Force Base is situated on 22.5 acres of land and will consist of 116 RV pads along with 5 nightly rent cabins supported by amenities such as a clubhouse, pool, dog park, and pickleball courts.  The property will also consist of 762  self storage units.

The loan request came to TMG from a well known developer in Northern Utah and needed creative financing to fit the needs of the two distinct but functional asset types.  As a ground up construction project, the borrower was looking to take advantage of current market rates for a long build with some permanent component.  TMG brought the lender that was able to lock and fix the rate thus eliminating the construction interest rate risk,  provide a structure and the funds necessary to get the project built. The team at TMG worked through numerous complexities with these distinctive asset types and helped the borrower meet his goals on the transaction.   

Location:  Utah

Property:  762 unit self storage facility; 121 site RV Park   

Loan Amount: $11,900,000

Interest Rate:  3.75% - Fixed during construction

Term:  5 years; 36 months construction and I/O followed by 24 months P&I payments upon stabilization

Amortization:   20 Years

Prepayment:  None 

LTC:   70%

Full List of Recent Closings