Turney Apartments – Phoenix, AZ
- Loan Amount: $2,025,000
- Purpose: Refinance
- Capital Source: Bank
- LTV: 75%
- Term: 5Yr Fixed + 5Yr Fixed Reset
- Rate: 4.05%
- Amortization: 30 Years
- Prepay: Step Down
Turney Apartments is a 28-unit multifamily property located in Phoenix, Arizona. The 1-story garden style asset was built in 1960 and offers residents a mix of 1-bed and 2-bed units with two interior courtyards. The borrower is an experienced private investor who acquired the asset in 2015 for $2.2 million.
Given the increase in market rents and property value appreciation in the area, the borrower decided to pull some cash out while at the same time take advantage of today’s exceptionally low interest rates. Tower was able to secure a flexible loan which offers the borrower a 4.05% fixed rate for the first 5 years of the loan term. At the end of the initial five years, the rate will reset for another five years at the lower of the 5-year treasury plus 1.90%, or the lifetime cap of 4.55%. At this point, the loan resets to a new 30-year amortization as well. Should the borrower stay in the loan the entire term they would effectively pay 4.3% for the 10-year period. Additionally, the prepay schedule of 3-2-1-1-1-1-1-1-1 offers greater flexibility than a 10-year agency, life company, or CMBS loan.
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.