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The Madison Group arranged a $10MM loan for a hospitality/music venue in California.

Tags: Commercial Loan, Commercial Real Estate, Commercial Real Estate Financing, Hospitality, Hospitality Financing, Hotel Loans, Hotel Financing, Construction Loans
Monday, Jan 31, 2022
by Angela Kesselman

The Madison Group (TMG), a leading source of commercial real estate financing nationwide, arranged a $10,000,000 construction loan for a client in California.  The client’s goal was to secure financing and renovate the existing building into a food, entertainment venue, and boutique hotel. TMG secured a 2- year construction line of credit for the client with a private lender.

The current lending market made it difficult to find the right lending partner, so TMG reached out to private money lenders that could get comfortable with the asset and construction plan. TMG was able to place a line of credit on the property for future construction, which gives the borrower the funds to get started and also modify the plans as he moves forward due to fluctuating costs and supply chain shortages. The owner can now get started on his dream project which will be completed in a year.

Location: California

Property: Boutique Hotel

Loan Amount: $10MM

Interest rate: 8.99%

Term: 24 months – Interest Only

The flexibility in this loan will allow this client to see the project through in an ever changing market without the strict oversight of a bank loan,” said Angela Kesselman, TMG’s Associate Director of Finance.

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