Multifamily Refinance Loan
- Capital Source: Bank
- Purpose of Loan: Refinance
- Loan Amount: $1,350,000
- LTV: 75%
- Rate: 3.40%
- Term: 5 Years Fixed / 30 Year Term
- Amortization: 30 Years
- Prepayment: Step Down
- Recourse: Non-Recourse
Tower Capital recently refinanced a 7-unit multifamily property located in Phoenix, Arizona. The property is comprised of all 2 Bed / 1 Bath units, and is well located between Downtown and Uptown Phoenix. The borrower had originally acquired the property in 2020 with an acquisition loan financed by Tower Capital. Since the borrower had stabilized the property at higher rents, the goal was to pull cash out to then use for another acquisition, growing his portfolio.
Most lenders limit cash out proceeds if the borrower has owned the property for less than 2 years. At the same time, rates were moving up, so the goal was to find a lender that could lock in a low rate at loan application, and be comfortable with cash out proceeds. Tower Capital found a lender that could do both, and offer non-recourse as well. The 5 year fixed rate offers a 3.4% rate fixed for 5 years, and then floats for 30 years so the borrower is never forced to make a balloon payment.
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 $300 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.