The Madison Group (TMG), a leading national lending source
of multifamily real estate financing, arranged a $1,275,000 loan to refinance an
18-unit apartment building in TN. Our
sponsor, a repeat client, had only owned the property for a short time but had
been able to increase rents quickly to a market level. Our client, a large investor in various commercial
real estate assets and classes, wished to refinance and cash out some of the
equity so that he could reinvest it in other projects. The challenge was that he had only owned the
property for a short time and needed to convert the added value of the rent
increases into cash. TMG’s commercial
finance advisor, Michael Estes, was able to secure a lender that recognized the
value added and allowed for cash out. As
an added value, the refinance was also able to provide for a longer
amortization and lower rate. Our client
has already begun discussing another deal with TMG.
Property: Multifamily
Location: Tennessee
Loan Amount: $1,275,000
LTV: 80%
Interest Rate: 6.50%
Terms: 5 years
Amortization: 25 years
Prepayment: 3,2,1
Guarantee: Recourse