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The Madison Group Arranges $2.4 Million Construction-to-Permanent Loan for Gas Station & Convenience Store in Tennessee

Tags: Gas Station Construction Loan, Commercial Real Estate Financing, C-Store Development, Automotive Property Loan, Retail Space Financing, Commercial Lending Advisor, Construction-to-permanent loan, Ground-up construction loan, Retail space financing
Wednesday, Jul 23, 2025
by Michael Estes

The Madison Group (TMG), a leading national commercial lending advisor specializing in commercial real estate loans, has arranged $2,400,000 in construction-to-permanent financing for a new gas station and convenience store development in Tennessee. Structured by experienced commercial loan advisor Michael Estes, the financing delivers 80% loan-to-cost (LTC) with a competitive 0.50% origination fee.

The 5-year loan package includes a 24-month interest-only construction period at Prime Rate (currently 7.50%), followed by a 36-month fixed phase at Prime minus 0.50% (currently 7.00%), amortized over 20 years. Monthly payments convert from interest-only to principal and interest upon stabilization. Full recourse applies.

Construction financing for gas stations and c-stores can be difficult to secure due to underwriting complexities and shifting market conditions. This successful transaction highlights TMG’s deep expertise in commercial construction loans and commitment to fueling retail and automotive-accessible development across the United States.

Property: Gas Station and Convenience Store  

Location: Tennessee                                              

Loan Amount: $2,400,000

LTC/LTV: 80%

Fee: 0.50%

Interest Rate: Prime rate (currently 7.50%) during construction; rate to lock at Prime - .050% (currently 7%) through remaining fixed term

Term: 5 years – 24-month construction term followed by 36-month permanent construction term

Amortization: 20-years 

Prepayment: Interest only; due monthly during construction period; principal and interest due monthly during fixed term

Recourse: Full Recourse



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