Madison Group (TMG), a nationwide source for construction financing, arranged a
$2.5M loan to build a multi-unit industrial building in Heber, Utah.
The Borrower worked with TMG to acquire the funds needed to
build-out a new property in Heber UT on a parcel of land they acquired last
year. The Borrower’s goal was to break ground as quickly as possible, so they
could build and occupy one of the spaces prior to their current lease
expiration date. There were no other lease LOIs on the property, except for the
TMG met the Borrower’s goals by arranging a 1-year
construction loan followed by a permanent loan once construction was completed.
The property was considered speculative construction given only one unit had an
arranged tenant; therefore, it was important to source a lender who could
accommodate the limited lease LOIs. TMG not only sourced a lender that
accommodated the limited occupancy, but also allowed the development fee to be
considered equity in the total project costs. Given the Borrower’s strength and
the project’s location, TMG was able to negotiate a higher leverage of 75% LTV.
The borrower’s goals were met and the project is under construction
and moving forward to stabilization.
Location: Heber, UT
Loan Amount: $2,500,000
Interest Rate: 4%
Term: 1 year
construction followed by a 10-year term perm
Only for construction; 25-year for permanent loan