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Madison Group Closes a $1.9M Cashout Refinance for Industrial Property

Tags: Cashout Refinance for Industrial Property
Thursday, Jan 14, 2016
by Barb

The Madison Group (TMG), a commercial broker and loan consultant, has facilitated the financing for the $1,900,000 refinance of a light industrial complex.  The finalized terms were 4.75% on a 25 year amortization and 10 year fixed term.  The loan proceeds allowed for the payoff of the current loan and cash out to the borrower for return of capital that had been infused to the property over time. The borrowers will hold back a reserve for business purposes and invest in other real estate. Being able to recapture nearly $500,000 of capital provides the borrower new opportunities and security for the future.

This property consists of 4 building totaling 109,650 square fee. There are 6-8 suites in each building and the owners occupy 20%. The borrowers had a current loan with a rate of 7.56% and 2 years left on the loan. They were willing to pay the defeasance to get locked into a lower rate. The current lender was unable to provide the cash out that the borrowers desired. They were also being told that their maximum length of term would be five years. They were able to lock into a great rate for a 10 year term with a reasonable prepayment penalty.

Brandi Link, The Madison Group Processor, commented, “The number of tenants in the property and the cash out proved to be a good test for both the lender and The Madison Group. All parties took their time and went over the property thoroughly to provide the terms that made sense to the borrowers for the long term.”

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