Tower Capital recently financed the acquisition loan for a 42-unit multifamily property located in Glendale, Arizona. The property is comprised of two-story walk-up buildings surrounding a central community swimming pool and playground. The borrower is an experienced, local, multifamily investor who plans to update the unit interiors, as well as install washer/dryers, to increase rents at the property.

The Freddie Mac Small Balance Loan arranged by Tower offered a 5-year fixed interest rate of 3.55% based upon a 30-year amortization schedule and twelve months of interest-only payments. The step-down prepayment structure allows for some flexibility should the borrower wish to divest of the asset during the loan term.

Due to COVID-19, the Freddie Mac Small Balance program has tightened up its credit standards, causing extra focus on borrowers’ experience and portfolio. The advisors at Tower Capital always work diligently to ensure their clients’ experience and financial strength are always highlighted and shown in the best light to effectuate optimal results.