Tower Capital recently financed the acquisition of a 7-unit multifamily property located in Phoenix, Arizona. The property is comprised of all 2 Bed / 1 Bath units, and was roughly 70% leased at closing. The borrower is an experienced, local, multifamily investor who plans to lease up the property and hold the asset long term.

The bank loan arranged by Tower offered a 5-year fixed interest rate of 3.99% based upon a 25-year amortization schedule. Since this loan does not have a prepayment penalty, it offers maximum flexibility should the borrower wish to divest of the asset or refinance during the loan term should rates continue to fall. Additionally, the lender allowed the borrower to close on the property upon issuance of the certificate of occupancy, but before the property was stabilized.