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Retail Financing

The Madison Group arranged a construction loan for a $2.5M multi-unit retail building

Tags: Retail Financing, Multi-tenant loans, Construction loans, Commercial financing
Wednesday, Oct 20, 2021
by Angela Kesselman

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. 

Location:  UT

Property:  Retail

Loan Amount: $1.958M

Interest Rate:  4%

Term:   1 year construction followed by a 10-year term perm

Amortization:  Interest Only for construction; 25 year for permanent loan

Prepayment:   None

LTC:   75%

LTV:  70%

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