Transaction Description
The Madison Group, a commercial broker and loan consultant, has facilitated and closed the refinance of $950,000 cash out for a 24-unit fully occupied, older apartment complex that is located in Brigham City, Utah.
Challenges
The borrower had some management issues over the previous years which caused the buildings expenses to be higher than desirable. The buildings were built in the 1950’s so many lenders were turned off by the age of the property. The borrower also wanted cash out, which proved to be difficult given the NOI and cap rate of the building.
The borrower collected utilities on top of the rents on the property and this had to be fully sifted through and properly presented to the lender and appraiser, as it was not as abundantly clear in the profit and loss statements initially provided to The Madison Group.
Solutions
Finding the right lender who understood these needs proved to be a challenge, but The Madison Group was able locate a friendly, flexible lender who was able to understand the challenges of the property and the income statement. They were also comfortable doing a loan that provided the borrower with the cash out they desired at a rate of 4.95% on a 10 year fixed term, and 25 year amortization.
The financing was arranged by Joe Evans 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 Joe Evans can be reached at 435-785-8350 or by emailing Joe at joe@madisongroupfunding.com.