Tower Capital was recently engaged to refinance a 13-home, single family rental portfolio, that is dispersed throughout the West Phoenix submarket. The borrowers, a duo of two local husband and wife investors, had owned the homes for many years and were seeking to refinance an existing bank loan that was approaching maturity and now in an open prepay period. The borrower’s goals were to lock in long term, fully amortizing, fixed rate debt, so they could payoff the assets in the future benefit from the cashflow during retirement years.

Most of the homes were appraised in the $250,000 range so the $1,300,000 loan represented about 38% LTV and offered the borrowers a 15-year, fully amortizing loan at 3.875%. The open prepay structure allows the borrowers to divest of the homes individually if their investment strategy changes.