Tower Capital recently secured an $4,500,000 loan on a 96-unit multifamily property located in Adelanto, California. Tower’s client is an experienced private investor who currently owns and operates over 6,000 apartment units throughout the southwestern US. The borrower acquired the property in 2012 in an all cash REO purchase. At the time of acquisition, the property was in complete distress with only 20% occupancy. The borrower has spent about $480K in capex to improve and stabilize the property.

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 interest only payments for the life of the term at a very low fixed rate of 3.25%.