Apartment Acquisition and Rehab – Tualatin, OR
- Capital Source: Debt Fund / Private Equity
- Purpose of Loan: Acquisition
- Total Funding: $15,600,000
- LTC: 96%
- Rate: 3.20%
- Term: 3 Years
- Amortization: Interest Only
- Prepayment: N/A
Tower Capital recently facilitated $11,600,000 in bridge financing, as well as $4,000,000 in LP equity for the acquisition of a 74-unit, garden-style multifamily property in the suburbs of Tualatin, OR. The property is highlighted by cutting-edge onsite amenities, beautiful and open outdoor common areas, and close proximity to surrounding retail, dining, entertainment and recreational amenities. With an average unit size of 976 square feet, the property is comprised of one, two, and three-bedroom floorplans with a unit mix of 23%, 58%, and 19% accordingly. All units feature prominent outdoor balconies/patios and are within short walk of the property’s onsite picnic areas, barbecuing stations, and natural scenic paths.
The borrower, who purchased the property in an off-market transaction, intends to deploy capital to upgrade the remaining 66 partially renovated units to feature premium finish-levels, as well as capitalize on implementing operational efficiencies through their significant management expertise. The interior renovations are set to include stainless steel appliances, lighting fixtures, plumbing fixtures, vinyl plank flooring in common areas, new carpet installed in bedrooms, tile backsplashes in the kitchens, and new electrical plates. The borrower also plans to make targeted and accretive improvements to the exterior of the property, as well as within the common areas with the goal of enhancing the property’s general image and curb appeal.
The 3-year bridge loan provided the borrower with a floating interest rate starting at 3.2% based upon 75% loan-to-cost. Tower also introduced the client to a joint venture limited partner who provided $4 million of capital for the promise of a 10% preferred return and graduated waterfall structure.
Tower Capital was able to successfully source the bridge financing on behalf of the borrower and source additional LP equity for the acquisition within 75 days. Tower generated a competitive lending environment with 10+ lenders quoting the opportunity which ultimately delivered the best pricing and terms for the borrower.
About Tower Capital:
Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.
Established in 2015 and headquartered in Phoenix, Arizona, Tower Capital provides customized structured financing to investors throughout the United States. We specialize in debt and equity placement ranging from $3 Million to $300 Million and have financed over $1.3 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.