Carole Arms Apartments

Carole Arms Apartments
Carole Arms Apartments – Phoenix, AZ



Transaction Details:

Carole Arms is a 44 unit apartment project located just south of the expanding Grand Canyon University, in Phoenix Arizona. The borrower owns and operates several thousand units in the immediate vicinity and with this addition to their portfolio, they can continue to take advantage of economies of scale. By sharing operations personal between properties they keep payroll costs lower than many of their competitors. The borrower closed on the property all cash in November 2017 utilizing 1031 money from a recent disposition.

The acquisition of Carole Arms was also inclusive of an adjacent single family home, which is located on a separate parcel, and was not part of the collateral for the loan. There is a LURA in place on half of the units, but is not limiting the rents in any way. The property is was 100% occupied at acquisition, with in-place rents averaging only $0.80 PSF. The borrower sees an opportunity to increase NOI through modest interior unit upgrades, lowering controllable expenses, adjusting rents to market, and enacting a RUBS program to recapture utility costs.


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.

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