The Madison Group (TMG) recently closed a $1.5M construction loan for a single tenant building in Salt Lake City, UT. The borrower, a first time client of TMG, is the owner of a diverse mix of properties. This was a building a 22,500 square foot “suit-to-fit” building on 5 acres of previously purchased land for a trucking company. The finalized terms of this loan were 4.70% interest rate and 10 year fixed term, 25 year amortization.
The borrower’s primary goal was to procure a fixed rate loan during the construction period and have that loan continue for up to 10 years. He also wanted an amortization that was 25 years or longer to maximize cash flow. He was also looking to have an option of early pay down on the principal without initiating a prepay penalty.
The Madison Group was able to work directly with the lender to provide a format where the borrower’s loan was fixed from the beginning of the construction. The tenant’s financials were reviewed and found acceptable for underwriting. The flexibility of the prepay penalty will allow the borrower to pay down the loan early if desired, or to maintain an excellent cash flow over the course of the 10 year fixed term.
The financing was arranged by Jeff Meierhofer at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded.
The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.