Multifamily Cash-Out Refinance – Phoenix, AZ
- Capital Source: Bank
- Purpose of Loan: Cash-Out Refinance
- Loan Amount: $18,000,000
- LTV: 70%
- Rate: 3.125%
- Term: 10 Years
- Amortization: 30 Years
- Prepayment: Stepdown
- Recourse: Non-Recourse
Tower Capital recently secured an $18,000,000 loan on a 304-unit multifamily property located in Phoenix, Arizona. The borrower acquired the asset in 2014 and has since performed significant capital improvements to completely rebrand the property. These improvements include a total exterior facelift and new flooring and appliance packages to the interior of the units. At the time of purchase, the property suffered from low rents and a sub-par tenant mix. Through intense efforts, the borrower replaced the majority of the tenants, increased rents, and raised NOI and value substantially.
The 70% LTV loan offers the borrower a 10-year term, fixed for the first 5 years at an exceptionally low rate of 3.125%. Unlike agency loans, the step-down prepay structures provides the borrower with additional flexibility should they wish to sell or refinance the asset during the loan term.
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.