Madison, AL Highlights

This income-producing real estate portfolio consists of five commercial buildings located on approximately 3.1 acres, similar in design and construction, but demonstrate different sizes and number of suites that are present in each. There are a total of 27 suites with 7 suites in Building 6995 totaling 6,856 sf, 3 suites in Building 7001 totaling 3,303 sf, 2 suites in Building 7009 totaling 1,257 sf, 6 suites in Building 7017 totaling 4,537 sf, and 9 suites in Building 6983 totaling 5,771 sf.  All five buildings have been renovated and upgraded periodically, and the current occupancy rate is 100%.

About the Neighborhood

The communities of Monrovia-Harvest-Capshaw merge into a group just north of Madison and northwest of the western areas of Huntsville. They are an integral part of the Huntsville metro area which is comprised of Madison County and Limestone County. Both counties are located along the Tennessee state boundary line at the very northern portion of the state of Alabama. The Huntsville metro area is the second largest in the state and includes the cities of Huntsville, Madison and Athens. Huntsville is the largest city in N. Alabama in both population and is the county seat of Madison County. It is located in the northern part of the State of Alabama, approximately 100 miles north of Birmingham, and 100 miles south of Nashville, Tennessee.  It is noteworthy that Madison, Huntsville’s largest satellite city, has been completely encircled by the larger city, but holds the title of the 10th largest city in the state in its own right. While deemed a “bedroom” community, Madison has grown rapidly in recent years and is still growing. It has moved close to Decatur in population ranking, and over the next 5 years or so, will likely surpass it.

Seniority

The first-priority mortgage lien position is the most senior and highest priority within the capital structure. In the event that a borrower defaults, the lien priority determines the order in which lenders are repaid. Senior lenders are always repaid first. All subordinated positions, including the amount held by the Originator and its investor syndicate, act as a buffer in the event of a deterioration in the Properties’ value.

Personal Guarantee

The Loans are personally guaranteed by the borrower, spouse, and all principals in the LLC. Additionally, the Sponsor and/or Guarantor are obligated to contribute monthly payments to maintain a tax and insurance reserve. Failure to adhere to reserve contribution requirements would lead to the triggering of a debt service and operating expense/shortfall guarantee.