Multifamily Acquisition Financing

• Capital Source: Freddie Mac SBL
• Purpose of Loan: Acquisition
• Loan Amount: $5,205,000
• LTV: 65%
• Rate: 6.17%
• Term: 5 Years
• Amortization: 30 years (Initial 24 Months of IO)
• Prepayment: 32110
• Recourse: Non-Recourse

Project Details:

Tower Capital recently arranged the $5,205,000 (65% LTC) acquisition loan for the purchase of a 53-unit garden style apartment community located in the Papago submarket of central Phoenix. Built in 1968, the previous owner invested more than $1,200,000 in renovations over the past four years. The extensive improvements encompassed landscaping, refinishing the bathtub, upgrading kitchen and bathroom cabinets, painting the interior and exterior, enhancing the HVAC system, renovating the laundry room, and revamping the parking area. The unit mix consists of majorly of one-bedroom units. All units include amenities like air conditioning and heating, tile floor, vinyl flooring, microwave, dishwasher, oven, refrigerator, and stainless-steel appliances. The 2-story community has an attractive courtyard and pool area for residents to enjoy. The property also offers 48 parking spots, a laundry facility and laundry service for residents to enjoy.

The Marlowe enjoys a prime location just minutes away from Arcadia Lite, one of the most vibrant neighborhoods in Metro Phoenix. This sought-after area not only provides convenient access to the bustling north Tempe job center, known for its expansive office spaces and a large workforce, but also to Arizona State University, the iconic Mill Avenue, Sky Harbor International Airport, and the energetic downtown Phoenix. Moreover, residents can explore a plethora of hotspots such as La Grande Orange, Postino’s, The Vig Arcadia, The Porch, OHSO, Hillstone, Tarbell’s, Zipp’s, Buck & Rider, Chestnut, Flower Child, and Pita Jungle—all within a short walk or bike ride.

Loan Structure:

The five-year, fixed rate loan secured through the Freddie Mac Small Balance Loan Program provides the borrower with a rate of 6.17% based upon a 30-year amortization schedule. Additionally, the borrower elected to choose the 32110 prepayment structure, giving them additional flexibility should they wish to sell the asset in a more opportune environment. The financing is non-recourse and assumable.