Financing Amount:
Capital Source:
Freddie Mac
Transaction Details:

Tower Capital’s client, an out of state, private investor, recently purchased the 30 unit multifamily property located at 9645 North 11th Avenue in Phoenix, Arizona for $1,560,000 or $52,000/unit. The property was acquired utilizing a small balance Freddie Mac loan, which offered non-recourse financing at a 4.63% interest rate, fixed for 10 years. The borrower chose to utilize a step down prepayment structure in order to provide some flexibility should they decide to sell later in the loan term.

The challenge was that the borrower is an out of state investor with no ties to the Phoenix market and no multifamily investment experience. Since he required have full leverage to make the deal feasible, none of the local banks or credit unions could get comfortable with the deal due to the investor profile. Furthermore, high interest private money options were not attractive to the borrower. Tower Capital was ultimately able to leverage its close relationships with the Freddie Mac seller-servicers to successfully  finance the property through the Freddie Mac Small Balance Loan program. This was accomplished by placing strong emphasis on the reputable, local 3rd party management company who would be managing the day to day operations of the asset, as well as highlighting the borrowers financial strength.

recent transactions


15333 N. Pima Road
Suite 375
Scottsdale, AZ 85260
AZ CMB-0928926


2626 Cole Ave
Suite 300
Dallas, TX 75204

Los Angeles

1801 Century Park East
24th & 25th Floors
Los Angeles, CA 90067
CA DRE-02237859
Copyright © 2024 All Rights Reserved Tower Capital | Website Developed by Connect Creative
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram