Tower Capital secured financing for a California client completing a 1031 exchange. The borrower acquired Palmetto Cottages, an 11-unit multifamily property in Phoenix, AZ. The mid-century, single story complex went through a heavy renovation in 2019 that included full interior and exterior rehab. Our client had three main objectives with this transaction, certainty of close within 65 days, prepayment flexibility, and an interest rate under 4%. Tower Capital engaged multiple local and regional banks and was able to achieve every objective.

The loan we secured was a 10-year fixed term, amortized over 25 years at 3.92% with a step down prepay.

With the COVID-19 global pandemic, borrower living out of state, and uncertainty in the market, we chose a lender that the borrower had a previous relationship with. The borrower is a seasoned real estate investor and the loan originator at the bank was extremely proactive and a pleasure to work with. Collectively, we were able to close the transaction in less than 60 days.