The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged a $1,260,000 loan for a 26-unit apartment purchase in Northern Utah. The borrowers had a 1031 exchange and needed to get up to 75% loan to value on the purchase of this property. The borrower was interested in a higher LTV loan and long amortization. The finalized terms of this loan were a 4.35% interest rate, a 15-year term fixed for five years, and a 30-year amortization.
The settlement deadline needed to be met, as the seller recognized the value was increasing during the sales contract timeline and was unlikely to extend. The property was taken under contract at the current in place income as a value added transaction. Rents were rising monthly because of ongoing improvements, increased rents, and higher occupancy.
The borrower was utilizing their financial resources for other properties during the sales timeline so their liquidity was extremely low. TMG worked with a common sense lender to use all accounts and increased the loan amount to accommodate the liquidity issue. The borrower kept the liquidity in hand and closed on a great cash flowing property with future rent growth.
“Even on smaller transactions, challenges can come up. This took a few extra swings at the plate to get all parties to close in a timely manner. Patience from the real estate brokers and the borrowers, along with a proactive approach by TMG’s loan team, kept the deal moving to funding,” said Jeff Meierhofer, TMG’s Director of Finance.
Jeff Meierhofer of The Madison Group arranged the financing.
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.