- Capital Source: Freddie SBL
- Purpose of Loan: Refinance
- Loan Amount: $2,083,000
- LTV: 70%
- Rate: 3.76%
- Term: 7 Years
- Amortization: 30 Years
- Prepayment: Stepdown (5,5,4,4,3,2,1%)
Tower Capital recently facilitated $2,083,000 in financing for the refinance of the 9-unit, 100% occupied, multifamily property located in the heart of Koreatown in Los Angeles, CA. The project is situated extremely close proximity to an abundant mix of restaurant, retail, health and wellness, and daily-need amenities within a short walk or drive. The unit mix consists of 100% two bedroom/two bathroom units. Current ownership made significant capital improvements to the property since originally acquiring the property in 2013.
The borrower intends to hold onto the property long-term and capitalize on robust submarket fundamentals and rising rental rates for comparable vintage and sized properties of a similar unit count in the immediate area.
The challenge with this transaction was identifying a non-recourse lender who was comfortable with lending to a China-based foreign national borrower. Additionally, the extreme difference in time zones and the difficulty of the borrower having to book a notary signing for loan docs about a month in advance of closing, made the logistics exceptionally tricky. Tower was able to successfully source the financing by finding an agency lender who could provide the borrower with extremely low fixed-rate, non-recourse perm debt.
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.