Tower Capital recently secured an $2,557,000 loan on a 49-unit multifamily property located in Adelanto, California. Tower’s client, an experienced private investor with over 6,000 apartment units under ownership, acquired the asset in 2014. Since then, they have performed moderate capital improvements to the property. At the time of purchase, the property suffered from low rents and a sub-par tenant mix. Through intense efforts, the borrower replaced the majority of the tenants, increased rents, and raised NOI and value substantially.

Limiting the loan to 55% LTV allowed the borrower to obtain the lowest rate and avoid all COVID-related principal and interest holdbacks. The non-recourse loan offers 3 years of interest only payments followed by a 30-year amortization schedule.