The Madison Group (TMG), a commercial broker and loan consultant, has facilitated the financing for the $5,300,000 refinance of a multifamily affordable housing property in Clearfield UT. The finalized terms were 4.18% on a 30 year amortization and 10 year fixed term. The loan proceeds allowed for the payoff of the current loan, buyout of 20% partner, and cash out to the borrower for return of capital that had been infused to the property over time.
This multifamily property contains 84 townhome units in 8 buildings, and has 100% low income housing. The property had been substantially rehabilitated 10 years ago and has seen stable income.
“There was a necessity to hit a specific date, as their loan was coming due and the partner was eager to be paid off”, said Jeff Meierhofer of The Madison Group, who originated the financing. “All parties work diligently together with weekly conference calls to facilitate a timely closing and provide a win-win for the buyers and owners”.
The borrower’s goals were to make sure that their family retained ownership of the property for long-term cash flow and retirement. The lower rate and 30 year amortization provided excellent cash flow and stability. The property is in need of some updating, and reserves were set aside for future work to the property to avoid any capital calls to the ownership. The commercial broker and legal team were able to put in place a new management team to keep the property in shape, and preserve the asset on behalf of the owners.
A happy borrower commented “Everyone was so kind and a joy to work with. Very professional, but also a sense of humor goes a long way especially during times of stress like trying to get a $5.3 million dollar loan. I had many questions, sent many emails and phone calls that where answered right away. It has been a pleasure working with all of you. I appreciate all their help and hard work. Everyone did an outstanding job and I am very grateful.”