Multifamily Refinance – Phoenix, AZ
- Capital Source: Freddie Mac
- Purpose of Loan: Refinance
- Loan Amount: $1,250,000
- LTV: 66%
- Rate: 4.18%
- Term: 20 Years
- Amortization: 30 Years
- Interest Only: 1 Year
- Prepayment: Step Down
- Recourse: Non-Recourse
Tower Capital recently secured a $1,250,000 loan for a 10-unit multifamily property located in central Phoenix. The property was acquired by the borrower in February 2019 who performed an extensive renovation and rebranding of the property. Each unit has been completely remodeled with windows, doors, flooring, cabinets, bathrooms, countertops, and appliances. Electrical and plumbing upgrades were completed as well as new landscaping and exterior paint and décor. The property was 100% occupied at the time of the refinance.
The small balance Freddie Mac loan provides the borrower a 20-year term, fixed for the first 5 years at 4.18%. The 5-4-3-2-1 stepdown prepayment offers the borrower flexibility should they wish to sell or pull cash out of the property through an additional refinancing down the road.
The borrower initially planned to sell the property, which was scheduled to close in Mid-March 2020, just as the COVID lockdowns were being put into place. The buyer got cold feet and walked away from the loan just days from closing. Given the current market conditions the borrower decided to switch strategies and hold on to the property. The Freddie Mac loan allowed the borrower to pay off the existing debt, return equity to their investors, and provide some flexibility should they wish to sell in a few years.
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.