The Madison Group (TMG), a leading source of office building financing nationwide, arranged the $2,400,000 cash out refinance for two office buildings in Salt Lake City Utah. The borrower was interested in an aggressive rate with cash out and flexibility on the prepayment penalty. The finalized terms of this loan were 4.60% interest rate fixed for 5 years, 15 year term, and a 30 year amortization. The loan has no prepayment penalty.
The new loan was for a refinance of two separate properties. The office buildings are located in Salt Lake City Utah. The owner occupies 25% of one property with his successful engineering firm. The owner rehabbed the buildings using his own funds, and added rentable space and increased his NOI. His financing goal was to recapture the cash he used for property improvements. The cash out loan returned the capital used for improvements to the property, and allows for future expansion on other projects.
One of the challenges of the transaction was the income was only recently stabilized. The properties have received extensive improvements and so rents have increased over the past 6 months. Underwriting needed to be flexible and not gravitate to past performance to determine the loan amount.
“I want to thank you for taking care of this very complicated refinance. We sure had many obstacles and thanks for pushing forward tirelessly. I really appreciate you guys for not giving up on me.” said the client at closing.
“There were quite a few moving parts, but the borrower stuck with it and wound up getting an aggressive rate and cash out.” 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. 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.