The Madison Group (TMG), a leading source of commercial financing nationwide, recently closed a $1,970,000 refinance loan for an industrial building in Ogden Utah. The owner currently occupies 2 of the 5 bays and needed to refinance the existing loan, as a balloon note was due. The loan included cash-out for capital improvement expenses and tenant improvements on the property.
The finalized terms of this loan were 4.44% interest, 7 year term with interest only for the first 12 months, and a 25 year amortization.
This 223,000 SF industrial property is part of the older Ogden BDO complex which was built in the 1940s. The borrower had previously occupied the entire building but had been downsizing her business and bringing in tenants over the past couple of years. The goal was to get a loan that not only have the borrower some cash for a new roof, but also gave her the flexibility to have cash available for tenant improvements as she moved forward with her plan to downsize further into another one of her buildings and bring two additional tenants to this building.
We were able to find a lender that was comfortable with the older building as it had excellent structural integrity. The lender also had to understand the borrowers end needs and get comfortable with the property’s historical income, which went from an owner occupied building with no rents to investment property over a short period of time. It was important that the borrower be able to move into another property quickly when additional tenants were found for the remaining two bays which she occupied. We were able to structure the new loan to pay off the existing mortgage, fund the roof replacements, and then give the borrower a future funding for Tenant Improvements, Leasing Commissions and moving expenses moving forward. We also structured one year of interest only to assist with the transition. The loan accomplished all the borrowers needs now and in the near future.
The financing was arranged by Angela Kesselman 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 can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.