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The Madison Group arranged a construction/perm loan for a multi-unit industrial property in Utah

Tags: Construction Loans, Commercial Financing, Multi-unit Financing, Owner Occupied Financing, No Prepayment Penalty, Industrial Financing
Sunday, Oct 31, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a nationwide source for construction financing, arranged a $2.5M loan to build a multi-unit industrial building in Heber, Utah.

The Borrower worked with TMG to acquire the funds needed to build-out a new property in Heber UT on a parcel of land they acquired last year. The Borrower’s goal was to break ground as quickly as possible, so they could build and occupy one of the spaces prior to their current lease expiration date. There were no other lease LOIs on the property, except for the owner-occupied unit.

TMG met the Borrower’s goals by arranging a 1-year construction loan followed by a permanent loan once construction was completed. The property was considered speculative construction given only one unit had an arranged tenant; therefore, it was important to source a lender who could accommodate the limited lease LOIs. TMG not only sourced a lender that accommodated the limited occupancy, but also allowed the development fee to be considered equity in the total project costs. Given the Borrower’s strength and the project’s location, TMG was able to negotiate a higher leverage of 75% LTV.

The borrower’s goals were met and the project is under construction and moving forward to stabilization.

Location:  Heber, UT

Property:  Industrial

Loan Amount: $2,500,000

Interest Rate:  4%

Term:   1 year construction followed by a 10-year term perm

Amortization:  Interest Only for construction; 25-year for permanent loan

Prepayment:   None

LTC:   75%

LTV:  75%

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Retail Financing

The Madison Group arranged a construction loan for a $2.5M multi-unit retail building

Tags: Retail Financing, Multi-tenant loans, Construction loans, Commercial financing
Wednesday, Oct 20, 2021
by Angela Kesselman

Summary:  The Madison Group (TMG), a local source for construction financing, arranged a loan to build a $2.5M multi-unit retail building in Utah.

The borrowers’ goals were to quickly get a construction loan to start the project.  They are currently under LOI on all units in the building for restaurants wishing to open as quickly as possible in this newly developing area. 

TMG was able to get the construction loan started along with providing a permanent loan at completion for these borrowers.  They do not have fully negotiated leases at this point, so it was important to find a lender that could accommodate the loan with only LOIs in place.  The lender also allowed the development fee to go in as equity on the project.   TMG was also able to get a higher leverage 75% loan to cost loan on a retail property with restaurants. 

Location:  UT

Property:  Retail

Loan Amount: $1.958M

Interest Rate:  4%

Term:   1 year construction followed by a 10-year term perm

Amortization:  Interest Only for construction; 25 year for permanent loan

Prepayment:   None

LTC:   75%

LTV:  70%

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Self Storage Financing

TMG arranged $6.250MM cash out nonrecourse refinance for a self storage facility loan at 2.97%

Tags: Self Storage Financing, Nonrecourse, Cash Out, Low rates, RV Park Financing
Monday, Oct 04, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for Self Storage financing arranged the $6,250,000 cash out nonrecourse refinance for a 466 unit self storage facility in Utah. 

The borrower initially approached TMG for a construction facility on another project.  Needing cash quickly, the borrower inquired about cash out possibilities for a self storage asset that he had owned for a couple of years.  Initial analysis of the project determined it was a great fit for a nonrecourse lender that TMG uses regularly for multiple asset classes, but primarily self storage. 

TMG worked with client and lender to get the deal approved and rate locked at a sub 3% rate fixed for 5 years with substantial cash out to inject into other real estate projects all on a non-recourse basis.  TMG also utilized its in-house processing and closing team to assist the lender with non-recourse closing requirements.  

Location:  Clinton, UT

Property:  466 enclosed self storage facility with 89 RV parking spaces. 

Loan Amount: $6,250,000

Interest Rate:  2.97%

Term:   5 Years

Amortization:   30 Years

Prepayment: 5, 4, 3, 2, 1 

LTV:   60%

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The Madison Group arranged $11.9MM arranged construction financing for a Self Storage and RV Park project

Tags: Self Storage Financing, RV Park Financing, Commercial Loans
Friday, Oct 01, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for Self Storage and RV Park lending, arranged the combined $11,900,000 construction financing for a Self Storage and RV Park in Layton UT. 

This unique property located in Layton UT near Hill Air Force Base is situated on 22.5 acres of land and will consist of 116 RV pads along with 5 nightly rent cabins supported by amenities such as a clubhouse, pool, dog park, and pickleball courts.  The property will also consist of 762  self storage units.

The loan request came to TMG from a well known developer in Northern Utah and needed creative financing to fit the needs of the two distinct but functional asset types.  As a ground up construction project, the borrower was looking to take advantage of current market rates for a long build with some permanent component.  TMG brought the lender that was able to lock and fix the rate thus eliminating the construction interest rate risk,  provide a structure and the funds necessary to get the project built. The team at TMG worked through numerous complexities with these distinctive asset types and helped the borrower meet his goals on the transaction.   

Location:  Utah

Property:  762 unit self storage facility; 121 site RV Park   

Loan Amount: $11,900,000

Interest Rate:  3.75% - Fixed during construction

Term:  5 years; 36 months construction and I/O followed by 24 months P&I payments upon stabilization

Amortization:   20 Years

Prepayment:  None 

LTC:   70%

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Multifamily Loans in Utah

The Madison Group arranged the $2.8MM purchase financing for a 21 unit multifamily building

Tags: Multifamily Financing, Interest Only terms, Commercial Loans in Utah
Friday, Oct 01, 2021
by Jared Shupe

Summary:  The Madison Group (TMG), a leading national lending source for Multifamily finance arranged the $2,800,000 purchase financing for a 21 unit multifamily building in downtown Salt Lake City.

The borrower’s were repeat clients of The Madison Group.  They have many of their own financing  sources, however, this particular deal was unique in that the borrowers were asking for certain terms that were unavailable from their own lending relationships.  They relied on TMG to source financing with the unique terms and structure requested and close the transaction on time according to the purchase agreement.  Financing was secured at market rates despite the unique terms requested by the investment group. 

Location:  Salt Lake City, UT

Property:  21 unit multifamily property

Loan Amount: $2,800,000

Interest Rate:  4.00%

Term:   5 Years; 2 Years Interest Only

Amortization:   30 Years

Prepayment:   None

LTPP:  70%

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