The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $1,767,000 nonrecourse refinance loan for a 24 unit multi-family senior housing (55+) property in metro Salt Lake City. The property was recently finished and occupied. The borrower was interested in a long term loan that returned capital from the construction of the project. The finalized terms of this loan were 4.87% interest rate, 12-year fixed term, and a 30-year amortization.
The multifamily property is a three-story apartment building and was designed for seniors. It has wide hallways, convenient parking, and the latest interior amenities. The project is located on 1.09 acres in an area that has very little senior housing, and the barrier to entry is high based on available land. It is located in a mature neighborhood with very little traffic.
The building was constructed in late 2015 and finished in April of 2016. Lease up was steady throughout 2016 and it now has a waiting list for future tenants. Construction completion was done through LLC funds and a bridge financing loan. This project recently achieved stabilized income and the expenses needed to be forecasted as there was limited operating history. The borrowers needed a nonrecourse loan to satisfy the investment team, which consisted of 8 individuals, and TMG sourced a 12-year fixed loan that will provide level payments for the investor group as rents increase over the years.
“We needed to meet the investor’s goals of long-term non-recourse funding. The interest rate market was moving quickly, and we were able to lock and preserve the desired returns for the investors,” said Jeff Meierhofer, TMG’s Director of Finance.
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. 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.