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The Madison Group Arranges $1,445,200 Refinance Loan for a Multifamily Portfolio

Wednesday, Feb 08, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $1,445,000 cash-out refinance of a multifamily residential portfolio in northern Utah and southern Idaho.  The borrower’s goals were to refinance the properties out of his personal name and put them into his LLC. He also needed to remove a partner from the existing mortgage debt.  TMG secured the financing with a five year fixed rate of 4.96% with a 25 year amortization at 75% LTV.

The portfolio consists of rental units with single family, duplexes, and 4-plexes. The dwellings are located in two different markets; some near USU in Logan, Utah, the others in Chubbuck, Idaho.  All properties are 100% leased. The experienced investor had good secondary income.  The borrower’s credit scores are lower than expected because of the 14 mortgages on his credit.  He had no derogatory credit.  

Some of the Idaho properties had very high LTVs, which were mitigated with the equity in the Utah properties.  TMG was able to find a lender willing to lend in both Idaho and Utah on multiple properties. The new loan structure reduced the number of mortgages to three and allowed him to put the loans into the names of the LLCs.   The borrower’s credit scores should now rise due to the reduction in the number of loans.  He also received some cash back to be used for future purchases.

“The transaction was complicated, as we had 13 properties in 2 different states with various equity positions.  We were able to find the right lender to work with these challenges and provide the financing the borrower required,” said Angela Kesselman, TMG’s Associate Director of Finance.

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.
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The Madison Group arranges $9MM construction to perm loan for a hospitality property in Utah

Monday, Feb 06, 2017
by Angela Kesselman

The Madison Group (TMG), a leading source of investment financing nationwide, arranged the $9,184,000 construction/perm loan for a hospitality project in Lehi, Utah.  The borrower’s goals were to get maximum funding for the construction of a Holiday Inn Express in the Utah market.  By using a trusted SBA source, TMG secured the financing and provided a 5-year fixed rate of 5%, 25-year term and amortization at an 86.5% LTV.

The long term clients returned to TMG to find financing for their newest venture.  They currently own two other hotel properties in other states. The borrowers were able to secure the franchise from Holiday Inn Express to build in Lehi UT.   This is the first hospitality property for the owners in the Utah market.   The property is located just off of the I-15 freeway in an excellent location. There are restaurants, retail, other hotels and a strong residential and commercial presence near the new site.  Holiday Inn Express did not have a hotel in this market and wanted a location in Lehi.  The property consists of a four-story, 93 room limited-service hotel with an indoor pool, fitness center, business center, sundry market and guest laundry.

The client’s goal is to build several hotels over the next few years and grow their hospitality business. They needed to maximum leverage to accomplish this. Finding a lender who was willing to provide a high LTV loan on a start-up of a hotel was one of the biggest challenges. Many banks were out of their allotments for hospitality for the year, which limited the lending sources for this transaction.

TMG was able to find a lender that provided high leverage and offered a fixed rate term on the loan which is what the borrower desired. The loan is a one-time construction to permanent close, so the owners don’t have to go through the loan process again or wait for the property to be stabilized in order to get permanent financing.  They also have a fixed rate first mortgage locked in at today’s rates which will avoid rate risk as they build.

“Our team worked along with the borrower from land purchase through zoning to help put the right pieces in place.  With the higher leverage loan, the borrowers were able to conserve their cash for the next project and build the project that they wanted in the Utah marketplace,” said Angela Kesselman, TMG’s Associate Director of Finance.

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.
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The Madison Group Arranges $1,767,000 for Apartment Refinance in Utah

Wednesday, Jan 11, 2017
by Jeff Meierhofer

The Madison Group (TMG), a leading source of multifamily financing nationwide, arranged the $1,767,000 nonrecourse refinance loan for a 24 unit multi-family senior housing (55+) property in metro Salt Lake City. The property was recently finished and occupied. The borrower was interested in a long term loan that returned capital from the construction of the project. The finalized terms of this loan were 4.87% interest rate, 12-year fixed term, and a 30-year amortization.

The multifamily property is a three-story apartment building and was designed for seniors. It has wide hallways, convenient parking, and the latest interior amenities. The project is located on 1.09 acres in an area that has very little senior housing, and the barrier to entry is high based on available land. It is located in a mature neighborhood with very little traffic.  

The building was constructed in late 2015 and finished in April of 2016. Lease up was steady throughout 2016 and it now has a waiting list for future tenants.  Construction completion was done through LLC funds and a bridge financing loan. This project recently achieved stabilized income and the expenses needed to be forecasted as there was limited operating history. The borrowers needed a nonrecourse loan to satisfy the investment team, which consisted of 8 individuals, and TMG sourced a 12-year fixed loan that will provide level payments for the investor group as rents increase over the years.

“We needed to meet the investor’s goals of long-term non-recourse funding. The interest rate market was moving quickly, and we were able to lock and preserve the desired returns for the investors,” said Jeff Meierhofer, TMG’s Director of Finance.

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.  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.
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The Madison Group Arranges $1,260,000 Loan for Purchase of Apartment in Utah

Wednesday, Dec 07, 2016
by Jeff Meierhofer

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.

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The Madison Group Arranges $4,500,000 Nonrecourse Loan for an Industrial Building in Wisconsin

Thursday, Dec 01, 2016
by Jeff Meierhofer

The Madison Group (TMG), a leading source of commercial financing nationwide, arranged the $4,500,000 nonrecourse refinance for a light industrial building located in a tertiary MSA in Wisconsin. The borrower’s goals were to get an aggressive rate fixed for the full term of the loan. The finalized terms of this loan were 4.33% interest rate, 15-year term, and a 15-year amortization. 

The property consists of a single-tenant, light industrial and office facility of 105,000 square feet. The facility contains approximately 5,470 square feet of finished office area, and the remainder of the building is unfinished manufacturing area.  The building is occupied by a non-credit grade single tenant. The current lease is firm term for seven years with options.

The borrower was motivated to get a nonrecourse loan as the entity is a small group of family investors and they required a loan that was made to the entity, not the individuals. The borrowers were coming off a 10-year fixed term at a higher rate and were determined to have a loan that would be self-amortizing, without the need to refinance this property again.

Finding the right fit with a lender that could combine a fixed term with a nonrecourse assumable loan was paramount. The borrower trusted TMG to deliver, and we worked with diligently  to perform and meet the borrower’s goals.” 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.
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