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The Madison Group Closes a $3M Cash-Out Refinance Loan for a Self-Storage Property in Utah

Tags: cash-out, refinance, self-storage, industrial
Monday, Apr 04, 2016
by Barb
The Madison Group (TMG), a leading source of self-storage financing nationwide, recently closed a $3.6M cash-out refinance loan for a self-storage property in Utah. The new financing replaces their current loan, which was maturing soon, and the cash out provides the owners capital to build another self-storage facility nearby. 

The previous lender provided the borrowers with a loan to purchase the property, plus an additional line of credit for improvements. Although the previous lender was willing to extend the loan terms, the borrower wanted to pay off the current loan and create a liquidity event by utilizing the equity created in the rehab and expansion. 

The borrower’s primary goal was to obtain cash-out for capital to build other projects. The new lenders were stuck on the purchase price plus rehab as the basis and were resistant to providing a higher loan amount. Although the borrower’s income was continuing to grow, the last 12 months of income data did not support the net income necessary for a larger loan. 

TMG worked diligently with underwriting to provide the market data necessary to obtain a larger loan amount and prove the borrower’s equity was supported. The lender was able to work around the cash-out obstacle and provided a loan over $1M beyond the basis. The new loan provides the borrower capital for new commercial projects and additional business opportunities for all parties. 

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.