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Recent Closed Loan: Multifamily Refinance in Gillette WY

Thursday, Oct 01, 2015
by Jeff Meierhofer

Transaction Description: The Madison Group (TMG) facilitated the $1,650,000 cash out refinance of a 42-unit apartment complex in Gillette Wyoming. The borrower received a nonrecourse loan at 70% loan to value which allowed for cash out of over $300,000. The loan is fixed for 10 years with an amortization of 30 years. Borrower received a rate of 4.6% which met his financial goals to hold the asset for the long term.

Challenges:  The borrowers desired to do a maximum cash-out loan and get long term financing for this multifamily property. The geography of the property and a population base of less than 40,000 was the challenge going into the transaction. There were also some deferred maintenance issues that needed to be solved prior to funding. The in-place insurance for the property was inadequate to cover the property – as it had increased in value over the past 10 years.

Solutions:  TMG worked to provide documentation to the lender about the strength of the market in Gillette. This was critical in providing a cash-out loan for the borrowers to use for other properties. The deferred maintenance issues were followed up at a high level with TMG’s processing department to make sure that the issues were solved with the lender in advance of closing. We helped source property insurance that met the lender’s requirements and wound up saving the borrowers money and increasing their monthly cash flow.

“There were many moving parts on this loan, said Jeff Meierhofer of The Madison Group who headed up the origination team. “But by working with the lenders and the borrowers directly, we were able to solve the issues and get a loan that really fit the borrower’s needs.

The financing was arranged by Jeff Meierhofer at The Madison Group.

The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including:  multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States.  Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital.  TMG works efficiently and effectively to get the transaction closed and funded.

The Madison Group and Jeff can be reached at 435-785-8350 or by emailing Jeff at Jeff.M@madisongroupfunding.com.