Press Release (ePRNews.com) - LEHI, Utah - Feb 06, 2017 - 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 firstname.lastname@example.org.
The Madison Group