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Construction and permanent loan for a senior housing project in Lindon, UT.

Friday, Dec 12, 2014
by Jeff Meierhofer

The Madison Group, a commercial broker and loan consultant, has facilitated the financing for a new $5,300,000 senior housing facility in Lindon Utah.  The property is located just off of State Street adjacent to a new assisted living center, a hospital, and the local senior center.

The developer’s goal was to fund the construction piece and then have the ability to roll into a long term loan during stabilization with an aggressive rate and a 25 year amortization. The Madison Group was able to provide a 24 month interest only loan which rolls to a 3 year mini-perm at completion at a rate under 4%.

“When we were referred to TMG we already had a solid financing commitment in hand”, commented the borrower. “We quickly learned, however, that the depth of TMG’s contacts introduced new and better methods and terms to boost the financial feasibility of our project.  We closed with a better structure and on better terms than we had previously imagined possible.”

Phase I construction has begun on the first 45 units. They anticipate the next phase to begin once the first is 50% leased up.  Once the project is complete, they will be able to roll into a long term loan.

“We liked the project and felt that the long term outlook for senior housing in Utah County was very strong.  The developers had some specific bonding needs and were also requesting a higher leverage loan” said Angela Kesselman of The Madison Group, who originated the financing.  “We were able to bring in the right lender who worked with us to mitigate the developer’s concerns and provide a financing arm that worked well for the project.”

The financing was arranged by Angela Kesselman, Associate Director of Finance.  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 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 Angela Kesselman can be reached at 435-659-2200 or by emailing Angela at angela@madisongroupfunding.com.