Multifamily Acquisition – Phoenix, AZ

• Capital Source: Bank
• Purpose of Loan: Acquisition
• Total Funding: $1,310,000
• LTV: 66%
• Rate: 3.5%
• Term: 5 Years
• Amortization: 30 years
• Prepayment: 3,2,1,1,1%
• Recourse: Non-Recourse

Transaction Details:

Tower Capital recently facilitated $1,310,000 in acquisition financing for the acquisition of a recently renovated 8-unit multifamily property in the heart of Midtown Phoenix. The property consists of four 2-bedroom/1-bathroom duplexes averaging 921 SF, which recently underwent extensive exterior and interior remodeling totaling approximately $850,000 ($106,250/unit). The property boasts prominent street frontage and is within a short walk to the burgeoning retail, dining, and entertainment amenities the Midtown Phoenix submarket has to offer.

The borrower, who purchased the property in an off-market transaction, intends to hold onto the asset long-term and assimilate it into their portfolio of other successful multifamily investment properties that they own throughout the Phoenix Metropolitan Area, as well as parts of California. They also plan to capitalize on implementing operational efficiencies through their expertise in managing this type of asset. 

The 5-year fixed rate loan will provide the borrower with permanent, fixed rate debt at a low interest rate of 3.5%. Tower Capital was able to successfully leverage six different lenders to compete for this loan opportunity, which ultimately delivered the best terms to the borrower with minimal headache.