The Madison Group (TMG), a leading source of multi-family financing nationwide, recently closed a $3.0M loan for a refinance of a 44 unit townhouse multi-family property in northern Utah. This loan replaced the construction loan/mini-permanent (mini-perm) financing that was on Phase 1 and 2 for this newly constructed property. The borrowers goals were get a rate and term refinance and minimal prepay penalty. The finalized terms were 4.3% on a 25 year amortization and 5 year fixed term.
The rural area was an issue with many lenders who did not understand the community. The property was only stabilized within the last six months. Therefore, the historical financials for the past 12 months were not enough to support the 70% LTV loan. The mini-perm loan was coming due and the borrowers did not want to take the higher interest rate that was being offered by the current lender. The property had 44 individual titles instead of only one encompassing the entire project.
The team at TMG worked diligently with the lender to determine the best loan structure for the borrowers. The lender knew the area and had knowledge of new businesses that are thriving there. Since there was a timing issue, to pay off the loan before it came due, the lender put forth extra effort, along with TMG’s processing team, to meet the deadline. The title challenge was worked through and the borrowers received a no-prepay loan. This allows for disposition of the individual units in the future without a hefty prepay.
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: multi-family, 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.