The Madison Group (TMG), a leading source of student housing financing nationwide, arranged the $1,200,000 acquisition loan for a student housing complex in Ephraim Utah. The finalized terms closed with a 75% LTV on a 10 year term fixed for 5 years, with a reset after the initial fixed period. There is no pre pay penalty, a 25 year amortization, and a 5% interest rate.
The first time clients were referred to TMG by the buyer’s real estate agent. The borrowers won the bid for a bank owned student housing property and needed a loan that offered certainty of delivery and options that met the buyer’s investment strategy. Due to the rural location and the small population of the nearby college, the loan was not eligible for Fannie Mae financing. The property’s operating expenses were not available for a portion of the last 12 months and the historical numbers were questionable. The property was bank owned with multiple buyers lined up behind our buyers, so they had to close on a tight deadline. TMG enlisted one of their trusted local lenders who immediately inspected the property and began working on the file and was able to successfully close within the contractual deadlines.
TMG’s knowledge of the local market and strong lender relationships allowed them to close the loan at 75% LTV for an out of state borrower. It was a difficult transaction that TMG was able to close smoothly and efficiently.
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 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.