The Park on 57th Avenue is a 128-unit garden-style apartment complex located in Glendale, Arizona. The property was built in 1973 and has since been renovated by the current ownership. It features a basketball court, laundry facilities, covered parking, a rental office, dishwashers in unit, and a picnic area with outdoor grills on a 7.9 acre site with 32 buildings. All apartments include individual HVAC and water heaters.
The borrower purchased the property in October 2015 for $5,700,000 ($44,531 / unit) and has since completed approximately $500,000 in capital improvements which includes a major exterior facelift and rebrand, along with replacement of appliances, flooring and paint in many units.
A recent pullback in production from both Fannie Mae and Freddie Mac has forced borrowers to seek alternative sources of high leverage, non-recourse, permanent financing for multifamily properties. One of Tower Capital’s capital partners is currently offering a “Private Label” conduit product where they are both the originator, servicer, and B-piece buyer, offering a high level of execution certainty. The 10-year fixed rate loan provides a competitive 3.79% coupon and 3 years of interest only payments. The $10,750,000 loan provided significant cash out to the borrower.
