The Madison Group (TMG), a leading source of financing nationwide, arranged the $720,000 loan for the purchase of a newly constructed office warehouse in Park City, UT. The borrower’s goals were to purchase the building with long-term financing and also secure funds to finish the interior of the unit for his business. TMG secured the financing with a 25-year fixed rate of 5.07% and a 25-year amortization at 94% LTV.
This unique property is designed as a living/work space. The first level is true warehouse space with 14 foot overhead doors and a 20 foot ceiling height. The 2nd floor will be built out for the buyer’s needs for his business and will consist of 1000 square feet of office space. The 3rd floor will be finished out by the buyer as a 1 bedroom residential apartment. The buyer plans on leasing out this space to a tenant or one of his employees.
The property was delivered as gray shell space. The borrower had limited funds to complete the improvements. TMG structured the loan with the construction proceeds built in, even though they were not at the point of getting their permits for the build out at the time of the loan closing. TMG was able to facilitate the bank to close in advance of the permits. The bank will advance the construction proceeds once the permit is received. The borrower was able to leverage up to 94% LTV and even get a small line of credit. This small business owner, located in Park City, Utah, will now be able to grow his business to match the strong demand for his services.
“We are very excited for our client. He was able to not only purchase real estate with very little out of his pocket but also customize the space to meet his small business owner needs. He can now grow his business and reduce his costs. The transaction is also great for the community, where he provides a much-needed service,” said Angela Kesselman, TMG’s Associate Director of Finance.
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