The Madison Group (TMG), a leading source of commercial financing nationwide, arranged the $2,250,000 cash-out refinance of a retail condo property in Park City Utah. The collateral consists of 5 units within a larger retail condo project. The borrowers wanted to refinance out of their existing recourse loan into a low rate, while obtaining some cash-out. The finalized terms were rate of 4% fixed for 7 years with a term of 10 years on a 25 year amortization. The non-recourse loan has a short 3 year prepayment penalty.
The borrowers have owned the property since 2006. The positives attributes on the transaction were the low LTV, excellent property condition, long term tenants, low market vacancy, and a great location. The biggest challenge was that the borrowers wanted a non-recourse loan, cash-out, and a flexible prepayment penalty, with minimal third party costs. This eliminated CMBS and life insurance companies from the obvious choice of lenders. TMG used their lender relationships to find a local bank that liked the area, strength of the borrowers, and collateral. By working together, TMG helped structure a loan that could offer the borrower all of the terms that they desired, resulting in a successful loan closing.
“The borrowers came to us to requesting a refinance of the debt that we put on the property 9 years ago. They decided to place more debt on the property if we could provide a non-recourse loan. We were able to find a loan that met all of their requested needs and they are now in an excellent position moving forward on a great asset” said Angela Kesselman, the lead originator from The Madison Group.
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.