Tuscany Apartments – Scottsdale, AZ
- Purpose: Acquisition Bridge Loan
- Capital Source: Finance Company
- LTC: 70%
- Term: 18 Months +Ext.
- Rate: 8.75%
- Prepay: None
Transaction Details: Tuscany Apartments is a 12-unit multifamily property located at 4601-4613 N. 74th St in downtown Scottsdale. The project consists of two 2-story, 6-unit buildings, situated on three ½-acre parcels. The property was acquired for $1.75 million ($145.8K/unit) with approximately $32.5k/door ($390,000) budgeted for renovations. The entire property will undergo a complete interior and exterior renovation and rebrand. Construction is planned to begin about 6 months post-close after city planning and permitting is complete. The renovation will be performed in two phases, with one building completely down at a time, while still maintaining occupancy and revenue from the other building. The total time for planning/permitting, construction, and lease-up to stabilization is 18-24 months.
The $1,512,500 loan being offered by the lender is based upon 70% loan-to-cost and 65% of As Renovated Value. The open prepayment structure allows maximum flexibility for the borrower should they wish to sell or recapitalize the loan early.