The Madison Group arranges a $21,000,000 loan for a medical office building in Utah
SALT LAKE CITY - Oct. 8, 2019 - PRLog -- The Madison Group (TMG), a nationwide leading source of Medical Office financing, arranged the $21,000,000 nonrecourse refinance of a medical office building in Utah. The borrower's goals were to refinance a bridge loan into a permanent long-term fixed loan. TMG secured the financing with a 10-year fixed rate of 4.7% and a 30-year amortization at 75% LTV.
The property consists of a 44,594 square foot medical center in a well-located area of Salt Lake City. The building was completed and 83% occupied since March of 2018. The nine-doctor investment team needed to refinance their existing bridge loan, although several of the suites had not been built out. The majority of the tenants are credit grade, but the unfinished space posed issues for many lenders. The investment group needed flexibility to have time to complete lease up and at the same time maximum proceeds to pay off the existing debt.
With the debt service coverage being tight, TMG used the window of opportunity of low rates to reduce the rate and increase coverage DSC to meet the lender's requirements. TMG secured a loan with a lender that was able to look at the long-term leases and the in-place income while working around the vacancy of the empty office suites.
"The execution of this loan allowed the owners to keep the property for as long as they desire while giving the tenants the flexibility to finish out the space as needed. It truly was a win for the them," 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-capitalization 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 firstname.lastname@example.org.
Jeff Meierhofer, Director of Finance