The Madison Group Arranges $2.5 Million Land Acquisition Loan for 169-Lot Single-Family Development in Idaho

The Madison Group (TMG), a nationwide commercial real estate finance firm, has arranged a $2,506,250 land acquisition loan for the purchase of land planned for a 169-lot single-family residential development in Idaho.

The financing provides the borrower with capital to acquire the development site and move forward with plans for the development, a proposed 169-home single-family residential community in Canyon County.

The development is planned across approximately 66.65 acres and eight development phases, with individual homes expected to range from approximately 1,400 to 1,700 square feet on lots ranging from approximately 9,000 to 10,000 square feet.  

Key Loan Terms

• Loan Amount: $2,506,250  

• Loan-to-Value: 50%  

• Interest Rate: Floating at WSJ Prime + 2.50%  

• Term: 24 months  

• Payment Structure: Interest-only  

• Prepayment Penalty: None  

• Use of Proceeds: Land acquisition for a 169-lot single-family residential development  

The 24-month, interest-only structure provides the borrower with flexibility during the early stages of the development while limiting required debt service to interest payments. The loan was also structured without a prepayment penalty, providing flexibility as the project progresses into subsequent stages of development.

The transaction demonstrates TMG's ability to source financing for land acquisition and residential development projects, in addition to the firm's traditional commercial real estate acquisition and refinance financing.

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