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