Resort on 35th Avenue – Phoenix, AZ
- Loan Amount: $17,250,000
- Purpose: Cash-out Refinance
- Capital Source: CMBS
- LTV: 75%
- Term: 10 Years
- Rate: 3.79%
- Amortization: 30 Years
- Interest Only: 3 Years
- Prepay: Defeasance
- Non-Recourse
Transaction Details:
The Resort on 35th Avenue is a 272-unit garden-style apartment complex located in Phoenix, Arizona. The apartment complex offers tenants an onsite leasing office, clubhouse, tennis and volleyball court, three (3) swimming pools, a spa, two (2) laundry facilities, and high-speed internet access. Built in 1984, the property rests on a 9.79 acre site with 17 buildings and contains a well balanced mix of fifty-six (56) studios, one-hundred sixty (160) one bed/one bath units, and fifty-six (56) two bed/two bath unit types. All apartments include individual HVAC systems.
The borrower purchased the property in September of 2014 for $8,145,000 ($29,835 / unit) and has spent approximately $644,869 on capital improvements which includes an exterior facelift and rebrand, along with interior renovations in many of the units.
A recent pullback in production from both Fannie Mae and Freddie Mac has forced borrowers to seek alternative sources of high leverage, non-recourse, permanent financing for multifamily properties. One of Tower Capital’s capital partners is currently offering a “Private Label” conduit product where they are both the originator, servicer, and B-piece buyer, offering a high level of execution certainty. The 10-year fixed rate loan provides a competitive 3.79% coupon and 3 years of interest only payments. The $17,250,000 loan provided significant cash out to the borrower.
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 $700 Million for our clients since inception. We focus on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.
