The Madison Group Arranges $3,000,000 loan to purchase a Self-Storage Facility in Tennessee

The Madison Group Arranges $3,000,000 loan to purchase a Self-Storage Facility in Tennessee

The Madison Group (TMG), a leading nationwide source for commercial real estate financing, is pleased to announce the successful arrangement of a $3,000,000 acquisition loan for a self-storage facility located in Tennessee. This transaction featured an 80% loan-to-cost (LTC) structure, demonstrating TMG's ability to effectively meet the financing needs of its clients. The five-year loan carries a competitive interest rate of 6.50% with a 25-year amortization schedule, providing the sponsor with favorable terms for this acquisition which aligned well and created synergy with other owned facilities in the region.  

The sponsors aimed to stretch 1031 exchange dollars across multiple opportunities / acquisitions, so a higher LTC was sought without use of the SBA program for this particular transaction.  By leveraging TMG’s extensive network of leading lenders, the sponsors were able to select a lender willing to stretch LTC beyond industry standards for self-storage and fund with higher proceeds to meet that goal.  This transaction exemplifies TMG's commitment to aligning financing solutions with the strategic objectives of its clients, ensuring optimal outcomes in today’s dynamic real estate market.

"Our goal is always to structure financing that aligns with our clients’ investment objectives," said Jared Shupe, Loan Officer at The Madison Group. "For this acquisition, we were able to deliver favorable leverage, pricing, and execution on terms that position the sponsors for long-term success. The self-storage market continues to demonstrate strong fundamentals, and we are proud to have helped facilitate a transaction that supports our clients’ growth strategy in Tennessee."

Transaction Summary

• Location: Tennessee

• Property Type: Self-Storage Facility

• Loan Amount: $3,000,000

• Interest Rate: Fixed at 6.50%

• Term: 5 Year Term

• Amortization: 25 Years

• LTC: 80%

‍