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The Madison Group Facilitates the $1.9 Million Commercial Real Estate Loan for a Residential Assisted Living Center in Utah

Tags: assisted living, SBA, commercial financing, purchase, senior living, finance, loan
Thursday, Jun 09, 2016
by Barb
The Madison Group (TMG), a leading source of senior housing financing nationwide, recently closed a $1,952,000 SBA loan for the purchase for a residential assisted living center in Utah. The property is well located and has a home appearance. It consists of 13 rooms with a common dining area, its own chef, sunroom, and outdoor patio for the residents. 

The finalized terms of this loan allowed the borrower to receive a 25 year amortization to facilitate maximum cash flow. The rate adjusts at 1.75% over Wall Street Journal prime rate. There is no balloon on the loan and it has a quarterly adjustment. 

The borrowers came to TMG after approaching two banks that declined their request. They were first time buyers of this specialized property type and only had a 5% down payment. Also, the property had not reached stabilization which created other challenges for the financing. 

“We saw that the sellers were flexible and were willing to carry back a second mortgage on the transaction. We worked with the bank, seller, and buyers to structure a loan that fit SBA guidelines”, said Angela Kesselman who originated the loan. “The buyers were able to get into the property with 5% down and buy their first assisted living center with a 25 year fully amortizing loan. It was a win-win transaction for all parties”. 

"It was a pleasure working with Angela and the team at The Madison Group! They are responsive problem-solvers that facilitated optimal financing terms for our unique niche of investment real estate/business (residential assisted living). The Madison Group is a strong, innovative broker who we've come to trust for future business and without-a-doubt recommend to other investors to "get the job done." –Said the borrower. 

The financing was arranged by Angela Kesselman at The Madison Group. 

The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for owner occupied and 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 can be reached at 435-785-8350 or by emailing Angela at angela@madisongroupfunding.com.