Montecito Apartments – Phoenix, AZ
- Loan Amount: $1,050,000
- Purpose: Refinance
- Capital Source: Bank
- LTC: 87.5%
- Term: 5+5 Years
- Rate: 4.15% fixed for initial 5 years, then adjusts to 4.65% for next 5 years
- Prepay: 3-2-1-1-1-1-1-1-1-0.5
Montecito is an 8-unit, single story, garden-style, multifamily property located in Phoenix, Arizona. Tower’s client, a local real estate investor, acquired the property in December 2017 for $925,000 and completed an extensive interior and exterior renovation of the property for $275,000. All of the tenants were removed, and the property was repainted, enjoyed an extensive landscape upgrade, and the interiors of the units were completely gutted and brought up to class A finishes. At the time of the financing, the property had been 100% occupied and stable for several months.
The extremely low interest 5/5 hybrid loan provided by the bank gives the borrower an exceptional amount of prepayment flexibility should they decide to sell the asset during the term, while offering an effective 10-year fixed rate of 4.4% should the borrower stay in the loan for the entire 10 years.
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 $2 Million to $100 Million and have financed over $500 Million for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.