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The Madison Group closes a $2,700,000 Refinance in North Carolina

Tags: industrial; building; financing; refinance; non-recourse; loan; single tenant
Monday, May 16, 2016
by Barb
The Madison Group (TMG), a leading source of commercial financing nationwide, recently closed a $2,700,000 rate and term, non-recourse refinance loan, for an industrial building in North Carolina. The existing mortgage note was coming due, so time was of the essence. The borrower, lender, and TMG worked to get a new loan that fit the borrower’s investment profile. The finalized terms of this loan were 4.64% interest, 15 year term, and a 15 year amortization. 

The property is located 30 miles outside of a metro area and is occupied by a single tenant. Effort was needed to secure lease terms that made sense for underwriting. The current lender would not go longer than a new 5 year term for the industrial property. The borrower’s goal was to secure a term of loan that was longer than the lease term. The lease hang out beyond the term of the loan presented an issue for most lenders. 

The Madison Group was able to source a lender that was able to work around the tertiary location and borrows desire for a non-recourse loan structure. The single tenant presented an issue, but TMG was able to work with the tenant to provide financials directly to underwriting to mitigate the concerns. Based on a 15 year amortization, the lender was willing to reach a 15 year fixed term to satisfy the borrower’s desire for one long-term non-recourse loan that would never have to be refinanced again. 

 “Few loans are ever easy, but this one had competing and moving parts,” said Jeff Meierhofer of The Madison Group. “Our relationship with the lender helped to provide the terms that ultimately satisfied the client.”

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.