Montecito is an 8-unit, single story, garden-style, multifamily property located in Phoenix, Arizona. Tower’s client, a local real estate investor, acquired the property in December 2017 for $925,000 and completed an extensive interior and exterior renovation of the property for $275,000. All of the tenants were removed, and the property was repainted, enjoyed an extensive landscape upgrade, and the interiors of the units were completely gutted and brought up to class A finishes. At the time of the financing, the property had been 100% occupied and stable for several months.

The extremely low interest 5/5 hybrid loan provided by the bank gives the borrower an exceptional amount of prepayment flexibility should they decide to sell the asset during the term, while offering an effective 10-year fixed rate of 4.4% should the borrower stay in the loan for the entire 10 years.