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Multifamily Financing

The Madison Group arranged the $9,8MM construction loan for 72 unit apartment

Tags: Apartment construction loan, Multifamily financing, Construction Financing, 85% LTC
Wednesday, Jul 28, 2021
by Barb

The Madison Group (TMG), a leading national lending source for multi-family construction, arranged the $9,800,000 construction loan for a new 72 unit property in Idaho.

The borrower reached out to The Madison Group with a singular goal in mind, achieve a higher Loan to Cost construction loan than his long-time established lender was willing to give.  Our client requested an 85% LTC construction loan and The Madison Group delivered with a lender that provided proceeds at approximately 84% LTC at a rate of 5.00%.  Once quoted, the client, lender, and the Madison Group worked together to get final approval, third party reports, and closing in a time frame that allowed the client to continue progress on the project uninterrupted.  

Location:  Idaho

Property:  72 Unit Multi-Family Construction

Loan Amount: $9,800,000

Interest Rate:  5.00%

Term:   20 months

Amortization:  N/A

Prepayment:   None

LTV:   84%

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Student Housing Financing

The Madison Group arranged the $2,2MM cash out refinance for a student housing apartment in Utah

Tags: Student Housing Loans, Cashout loans, Multifamily Financing, Low Prepayment Penalty loans,
Saturday, Jul 10, 2021
by Jeff Meierhofer

The Madison Group (TMG), a leading national lending source for Multifamily properties, arranged the $2,215,000 cash out refinance for a student housing apartment complex in Utah.  The borrower’s goals were to pay off existing lien that was maturing. The final loan terms were 3.85% with a 10-year term and 30-year amortization.

TMG worked diligently with the client and lender to get the loan closed. They were able to secure financing term allowing for cash out get 3 years interest only on a 30-year amortization. The borrower had a prepayment penalty, and TMG worked with the lender to hold off the loan closing until the prepayment penalty lapsed. The loan closed in time, so the client did not get charged any additional interest.

Location:  Utah

Property:  Apartment

Loan Amount: $2,215,000

Interest Rate: 3.85%

Term:   10 Years

Amortization:  30 Years

Prepayment:   3,3,2,2,1,1,1
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Multifamily Financing

The Madison Group secured the $10MM nonrecourse cash out refinance for an apartment in Utah

Tags: nonrecourse loans, apartment loans, cashout loans, multifamily refinance, Utah Apartment loans, Nationwide lending for CRE
Tuesday, Jul 06, 2021
by Jeff Meierhofer

Summary:  The Madison Group (TMG), a leading national lending source for Multifamily properties, arranged the $10,400,000 refinance for an 82 unit apartment in southern Utah. The borrower’s goals were to get a nonrecourse loan and a fixed term that matched their other two phases of the complex. This property is the final phase of a 3-phase project that has been increasingly successful in this growing market.

TMG worked with the lender to fund the long-term loan within 60 days of the property becoming 90% occupied. This allowed the investor group to take advantage of the low rates available in the market. The nonrecourse loan provided the structure the borrowers needed. Extra effort was taken to align the 3 projects terms for either refinancing or sale of the asset in the future. The borrowing entity was able to recapture equity infused into the project and get a 75% cash out loan.

Location:  Utah

Property:  Apartment Complex

Loan Amount: $10,400,000

Interest Rate:  3.52%

Term:  7 Years

Amortization:   30 Years

Prepayment:  Yield maintenance

LTV:   75%

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Mobile Home Park Financing

The Madison Group arranged the $8MM nonrecourse cash out refinance for MHP in California

Tags: Nonrecourse Cashout Loan, MHP Financing, MHC Loans, Interest Only loans
Monday, Jun 28, 2021
by Paul Kuster

Summary:  The Madison Group (TMG), a leading national lending source of MHP/MHC financing, arranged the $8MM refinance for a 105-unit in California.  The final terms were a 7-year term, interest only, with a rate of 3.07%.  The loan is non-recourse and the borrower received cash out from the transaction.

The 105-unit MHC is well located in Silicon Valley close to office, retail shopping, residential, public schools, major employers, and access to major transportation corridors.   

The borrower’s goals were to refinance out of its existing recourse-debt into non-recourse debt at a lower interest rate, take cash out to invest in major improvements to its mobile home community, and to invest in other commercial real estate opportunities on a predetermined schedule.

TMG was able to help the borrower meet their goals by offering several financing solutions and loan options that allowed the borrower to select the optimal financing solution that met the timing of the borrower’s priorities and objectives.

 

Location:  California

Property:  Mobile Home Park

Loan Amount: $8,133,000

Interest Rate:  3.07%

Term:   7 Years

Amortization:   Interest only for 7 years

Prepayment:   Yield Maintenance

LTV:   55%

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NNN Industrial Property Financing

The Madison Group arranged the $3MM cash out refinancing for an NNN industrial property ground lease in Utah

Tuesday, Jun 22, 2021
by Barb

Summary:  The Madison Group (TMG), a leading national lending source for ground lease financing arranged the $3,100,000 cash out refinancing for an NNN industrial property ground lease in North Salt Lake City, UT. 

The borrower engaged TMG with a primary goal to maximize cash out proceeds.  The property has a recently executed and very strong NNN ground lease coupled with some lease rollover exposure on the other half of the property.  TMG worked closely with a local lender to get them comfortable with the large cash out request.  They did this by listening to the client, understanding the history of the borrowers and project, and effectively communicating to the lender why the cash out transaction made sense for all parties.  TMG then worked with the lender and borrower to gather documents and obtain loan terms that met the borrower goals. The team then worked through a complicated processing and closing procedure to get the loan closed.       

 

Location:  Utah

Property:  Industrial Ground Lease

Loan Amount: ~$3,100,000

Interest Rate:  4.00%

Term:   10 Years

Amortization:   25 Years

Prepayment:   None

LTV:  70%


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