Cash-out Multifamily Refinance – Glendale, AZ

• Capital Source: Fannie Mae
• Purpose of Loan: Refinance
• Loan Amount: $13,500,000
• LTV: 75%
• Rate: 3.33%
• Term: 12 Years
• Amortization: 3 Years Interest Only followed by 30 Years
• Prepayment: Yield Maintenance
• Recourse: Non-Recourse

Transaction Details:
Tower Capital successfully placed a $13,500,000 refinance loan on a 144-unit multifamily property located in Glendale, AZ.  The borrower purchased the gated community in May 2011 and has since performed extensive renovations including new granite counter tops, new washer and dryer sets, and stainless steel appliances.

The borrower was seeking a maximum cash out refinance and was able to qualify for a Fannie Mae conventional loan. Tower Capital was able to secure a 12-year fixed loan at a 3.33% interest rate, which was 9 basis points lower than on the original loan application. The first three years of the loan were interest only, followed by a 30-year amortization schedule.

Navigating through COVID brought challenges for all parties involved however from beginning to close, the process lasted only 45 days. The borrower resides in Canada which added another layer of tasks,  but overall it was a very straight forward transaction and we were pleased to help the borrower achieve their goals. Tower Capital worked very closely with the appraiser to ensure maximum possible value and loan proceeds and was able to secure loan dollars $200,000 over the original amount issued on the loan application.