Tower Capital arranged a $10,225,000 refinance totaling 95 units of two multifamily properties located in Phoenix, Arizona. The borrower purchased these two contiguous properties in October 2020. Since taking over ownership, he has made significant improvements to the properties including upgrading all interior units, painting the exterior, and re-piping the entire complex.

The borrower is a long-term holder and was seeking the lowest fixed interest rate that the market will offer. This was our second and third deal with this sponsor and he prefers to work with regional banks instead of the agencies. We were able to run a targeted process and had multiple offers on this opportunity. The sponsor elected to move forward with a Denver-based, regional bank that was able to offer the most competitive terms. Tower Capital was able to secure a 10-year fixed loan at a 3.5% interest rate, full recourse.

Given the elevated transaction velocity in Phoenix, third parties took a month to complete, however, given the experience level of all the parties involved, the total loan process from signed LOI to close, was effectuated in less than 60 days.