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$4,600,000 Purchase Financing for a Credit Tenant Property

Tuesday, Jul 14, 2015
by Jeff Meiehofer

Transaction Description:  

The Madison Group, a commercial loan consultant and broker, has provided the financing for a credit tenant net leased FedEx distribution center. The property is located in Birmingham Alabama.

Challenges:  The buyer, a REIT, could not provide a warm body carve out for the nonrecourse loan other than to the borrowing entity. The borrowing group wanted a 30 year amortization to garner the greatest cash flow possible for the REIT. The environmental report provider required specialized language in the reliance letter which caused delays and needed special attention.

Solutions: The loan team at The Madison Group and lender provided a work through for the REIT and the feeder fund investors. They also worked together to provide an updated ESA in 6 days to accommodate a timely closing.  Most lenders were unable to provide the pricing on the spread to make the ROI work for the investors. TMG worked for the client/buyer to procure the financing terms that fit their needs.  TMG secured a loan non-recourse loan for the client with a 10 years fixed term, 30 year amortization, with the rate of 4.2%.

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

The Madison Group 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 Meierhofer can be reached at 435-785-8350 or by emailing Jeff at jeff.m@madisongroupfunding.com.