Bethany Park Apartments – Glendale, AZ
- Loan Amount: 9,343,000
- Purpose of Loan: Acquisition
- Capital Source: Fannie Mae
- LTV: 78%
- Interest Rate: 4.94%
- Term: 12 Years
- Prepay: Yield Maintenance
Bethany Park apartments is a 172-unit, two-story, garden style, multifamily property located in Glendale, Arizona. The property was constructed in 1984 and features a unit mix of 124 one-bed one-bath unit and 48 two-bedroom two-bath units. Project amenities include two swimming pools with spa, covered parking, gated access, and two community laundry facilities.
The property went under loan application in late November, prior to the 60 basis point increase in 10-year treasury rates, which increased the interest rate significantly during the course of the financing process and put downward pressure on loan proceeds due to minimum debt service coverage constraints as required by the lender. In order to offset the increase in interest rates and maintain loan dollars, Tower Capital was able to support more aggressive underwriting by the lender which boosted underwritten NOI prior to close and buffered the negative affect of rate increases.
About Tower Capital:
Tower Capital is a Commercial Real Estate Finance firm specializing in debt and equity placement on behalf of commercial real estate investors throughout the country. They offer borrowers conventional permanent financing through their commercial mortgage brokerage division, as well as short term bridge solutions through their in-house private money platform.