MULTIFAMILY ACQUISITION LOAN – TEMPE, AZ
- Capital Source: Bank
- Purpose of Loan: Acquisition Financing
- Loan Amount: $10,000,000
- LTV: 65%
- Rate: 2.10%
- Term: 18 Months with one 12 Month extension
- Amortization: 18 Months IO
- Recourse: Partial Recourse
Tower Capital recently arranged the financing for a 64-unit, fully re-positioned, garden-style apartment community located in Tempe, Arizona. Built in 1976 and recently renovated, the property consists of nine two-story rental buildings on 1.74 acres. The unit mix consists entirely of two-bedroom / one-bath units ranging from 800 to 990 square feet. Units feature in-suite laundry in all units, wood vinyl flooring, and kitchens equipped with new white shaker cabinets, quartz countertops, and stainless-steel appliances. Internet, utilities, and parking are also included. The community also provides its residents with a swimming pool, laundry room, barbecue grills, and leasing office access.
The 18-month floating rate, non-recourse, bank loan offers the borrower a low starting rate and then adjusts monthly over the 30 Day SOFR. With 18 months of interest only payments and no pre-pay penalty, this gives the borrower plenty of time to increase the value of the property, and then sell or refinance into a fixed rate loan without paying a large pre-pay penalty.
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 $200 Million and have financed over $2 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.