Tower Capital recently secured an $15,000,000 loan on a 192-unit multifamily property located in Phoenix, Arizona. The borrower acquired the asset in 2016 and has since performed significant capital improvements which include a complete exterior facelift and interior upgrades to the units. At the time of purchase, the property suffered from low rents and a sub-par tenant mix. Through intense efforts, the borrower replaced the majority of the tenants, increased rents, and raised NOI and value substantially.

The 70% LTV loan offers the borrower a 10-year term, fixed for the first 5 years at an exceptionally low rate of 3.125%. Unlike agency loans, the step-down prepay structures provides the borrower with additional flexibility should they wish to sell or refinance the asset during the loan term.