The Madison Group (TMG), a leading
source of commercial real
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.
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.