The Madison
Group (TMG), a leading national source for Self Storage financing arranged the
$1,910,000 nonrecourse cash out refinance.
The borrower approached TMG for a cash out refinance on a
project in a tertiary market. The property was purchased 3 years ago as a value-add
project. The clients made major upgrades to the property and increased the NOI
dramatically over a 3-year period. The borrowing entity desired to get a cash
out loan based on the new value and income of the property. They came to TMG
knowing our ability to get nonrecourse loans with maximum proceeds.
TMG collaborated with the client and lender to provide
$900,000 above the basis (cash out) the clients had invested in the
transaction. This worked in the clients favor to utilize the funds for another
purchase and will increase the overall cash on cash return. TMG also utilized
its in-house processing and closing team to assist the lender with non-recourse
closing requirements.
Location: South
Carolina
Property: Self
Storage
Loan Amount: $1,910,000
Interest Rate: 4.44%
Term: 10 Years – 4
years Interest Only
Amortization: 30
Years
Prepayment:
Defeasance