Nonrecourse Commercial Loans with our extensive network of lenders




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Nonrecourse Commercial Loans over $1,000,000

Commercial real estate investors are challenged by the time it takes to source a quality loan for their unique investment strategy.  The Madison Group works for you to provide alternative loan options from the nation’s top lenders, so you will feel confident that you have chosen the optimal financing for your long term investment goals.

The Madison Group is partnered with a diverse group of lenders including commercial banks, life insurance companies, CMBS and local banks. Our strong relationships with these lenders enable us to maintain a healthy variety of nonrecourse loan products and terms. Our clients benefit from competitive rates that will provide you with the most suitable commercial loans to help preserve your working capital.  A nonrecourse loan may be the best loan structure to meet your goals.

A nonrecourse loan is a mortgage agreement in which the collateral securing a loan is the sole source of repayment.  The lender can’t hold the borrower or guarantors liable in the event of a default. The lender can seize and sell the property but can’t seize non-pledged property or assets from the borrower. This type of financing is typically found on longer term, permanent commercial real estate loans placed on a stabilized and performing asset.

Some Pros and Cons for Nonrecourse Commercial Loans

Pros

Cons

No personal liability (except bad boy carve-out)

   Defeasance or yield maintenance

Longer amortizations & terms

Higher costs to close

Assumable to a new owner

Reserves for TI & LC

High LTV

Limited to certain commercial lenders

Certainty of closing

Escrow and impound accounts for taxes & insurance


At the Madison Group, we offer a wide range of commercial real estate financing options for investor and owner-user properties. 

Nonrecourse commercial real estate loans can be used for commercial investments such as shopping centers, medical offices, office buildings, retail centers, industrial and warehouse, self storage, multi-family, and flagged hotels, to name a few. They may be used for acquisition or refinancing of a commercial real estate.  

General Nonrecourse Lending Parameters

Limits

$1,000,000 minimum

Rates

Competitive spreads over the 5-year and 10-year swap

Terms

5, 10, 15 and 30-year rate terms 

Amortization

25 to 35-year amortization 

Recourse

Nonrecourse (subject to standard carve-outs)

DSC Range

1.03 to 1.35 with a 1.20 DSC on average

LTV Limits

80% LTV/LTC maximum – 85% with mezzanine financing

Debt Yield

7% Debt Yield – depending upon quality of the asset

Property types

Apartments & Mobile Home Parks (Multi-family properties), Retail, Office, Industrial, Self-Storage, Hospitality, Industrial, Single Tenant, Credit Tenant

Geographic areas

Most States

How you benefit from working with TMG:

  • Create greater cash flow and save time sourcing rates and terms that increase your cash flow
  • We fully analyze your transaction so you avoid pitfalls and costly surprises
  • Receive offers from more than one source
  • Accessing multiple lending programs/institutions/lenders for financing options that fit your needs
  • Assistance every step of the way with our team of experienced commercial real estate lending professionals

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Call us today!
  435-785-8350