Fractured Condo Acquisition Financing, Tucson, AZ

• Capital Source: Bank
• Purpose of Loan: Acquisition Financing
• Loan Amount: $1,550,000
• LTV: 70%
• Rate: 3.99%
• Term: 5 Years
• Amortization: 25 Years
• Prepayment: Step-down
• Recourse: Non-Recourse

Transaction Details:

Tower recently arranged the financing for 29 out of 76 condo units located in Tucson, AZ. The complex was originally built in 1973 and is situated on approximately 2.78 acres. Construction consists of wood framing and stucco. The project is landscaped with mature trees, desert plants, palm trees and rock-scape. The community offers a gated swimming pool, three onsite laundry facilities, covered parking, and a gated entry. The HOA is responsible for all outdoor maintenance, including exterior paint, pool, fencing and roofs. The 29 subject units were acquired from one seller who had owned the units for a number of years and had decided to cash out.

The 5-year fixed rate loan provided by a local bank provided an attractive 3.99% fixed rate based on a 25-year amortization schedule and maximum loan to value of 70%. The loan also allowed for partial releases, should the borrower wish to divest of the assets individually.

The borrower initially signed up the loan with another lender who did not perform, so Tower was able to quickly switch gears to find an alternative solution that ended up being just as attractive. Since 3rd party reports were already completed, the new bank had them assigned over and the loan was closed within 2 weeks of engagement with the new lender. A situation that could have been a disaster was handled effectively by Tower’s team to provide maximum results for the client.