Summary: The Madison
Group (TMG), a local source for construction financing, arranged a loan to
build a $2.5M multi-unit retail building in Utah.
The borrowers’ goals were to quickly get a construction loan
to start the project. They are currently
under LOI on all units in the building for restaurants wishing to open as
quickly as possible in this newly developing area.
TMG was able to get the construction loan started along with
providing a permanent loan at completion for these borrowers. They do not have fully negotiated leases at
this point, so it was important to find a lender that could accommodate the
loan with only LOIs in place. The lender
also allowed the development fee to go in as equity on the project. TMG was also able to get a higher leverage
75% loan to cost loan on a retail property with restaurants.
Loan Amount: $1.958M
Interest Rate: 4%
Term: 1 year
construction followed by a 10-year term perm
Only for construction; 25 year for permanent loan