Oberon Place Apartments – Phoenix, AZ
- Loan Amount: $1,500,000
- Purpose: Refinance
- Capital Source: Bank
- LTV: 75%
- Term: 10 Years
- Rate: 4.10% / 4.6%
- Prepay: Stepdown
Oberon Place is a 24-unit, garden style apartment community located in Phoenix, Arizona. The project was completed in 1981 and consists of wood frame and stucco construction. Tower’s client acquired the property in June of 2015 for $1 million and has since spent moderate capex to keep the property clean and has replaced appliances and other unit interiors as needed.
The borrower is an experienced private investor based in California who owns and operates a portfolio of approximately 5,000 apartment units throughout the southwestern US. They leverage economies of scale to keep operating costs low by spreading staff across various properties they own in the area. Since acquisition, the borrower has created significant value through the property renovations and installing better quality tenants who pay higher rents.
The 75% LTV loan allowed the borrower to pay off their existing acquisition bridge loan, cover financing costs, recoup money spent of capital improvements, and pull some extra cash out for additional investment opportunities.
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 $500 Million for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.