Multifamily Cash-Out Refinance - Mesa, AZ

Multifamily Cash-Out Refinance – Mesa, AZ

  • Capital Source: Fannie Mae
  • Purpose of Loan: Cash-Out Refinance
  • Loan Amount: $6,005,000
  • LTV: 55%
  • Rate: 2.72%
  • Term: 10 Years
  • Amortization: 30 Years
  • Prepayment: 9.75 Year Yield Maintenance
  • Recourse: Non-Recourse

Transaction Details:
Tower Capital helped arrange a $6,005,000 cash out refinance of a 69- unit multifamily property in the east valley. First completed in 1973, and acquired by the borrow in April 2016, the property  is comprised of block construction and individually metered for electricity. The borrower completed his repositioning and has achieved 100% occupancy at the property.

The conventional Fannie Mae loan provides the borrower with a 10-year fixed term, interest only for the duration of the loan at 2.72%. The borrower’s number one priority was seeking the lowest interest rate possible and chose a 55% LTV structure.

Initial conversations with the borrower consisted of arranging a small balance loan with a flexible prepay. The Agencies have implemented COVID hold back restrictions and as market conditions started to stabilize, the borrower explored conventional options. By moving into a conventional loan, he could achieve the lowest rate available as well as getting the reserves waived given his loan to value. Accomplishing full term interest only debt service payments was also of significance since the borrower can utilize the excess cashflow towards the acquisition of additional assets to grow his portfolio.

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 $1 Billion for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.