The Madison Group (TMG), a leading source of office financing
nationwide, arranged the $2,500,000
cash out refinance with a $200,000 line of credit
for an office building in Colorado. The property consists of two
eight-story buildings with 28 office units. The
borrower’s goals were to get a cash-out refinance to lower his current
rate and renovate some units within the building. The finalized
terms of this loan were a 5% interest
rate, 5-year term, and a 25-year
amortization.
Located in
the city of Centennial, approximately 14 miles south of Denver, the twin-tower
office complex is adjacent to East Arapahoe Road, a major arterial serving the
Denver-Aurora metropolitan area. Tower
number 1 has rental space for 26 tenants while tower 2 has space for 20. The combined 85,000 square-foot complex
features parking for 215 vehicles, including some enclosed garage parking
beneath the towers.
Obstacles
hindering consummation of this loan were low occupancy in the office space with
many tenants leasing on a month-to-month basis, rather than holding long-term
leases. Additionally, varying
re-purchase dates of several condominium office units required the loan
originator to conduct rigorous research, calling various title companies to
acquire needed documentation. Another
challenge was attempting to retrieve required documentation from one of the
borrowers, a very busy state senator.
“We worked hard on finding a
lender as the borrower continued to increase occupancy while the loan was being
developed,” said TMG’s Loan Processor Brandi.
“We remained in
constant contact with the lender to get them what they needed and to satisfy
all their conditions. Working diligently with title companies to ensure
everything, such as payoffs, kept this file moving along. Ultimately, the borrower received great loan
terms.”
“We faced a lot of struggles and obstacles but
after 11 months of keeping on top of the file and fighting through the
challenges, we were able to close on this loan,” said Jeff Meierhofer, TMG’s Director of Finance.
The financing was arranged by Jeff Meierhofer at The
Madison Group.