Tower Capital recently financed the acquisition of a 10-unit multifamily property located in Phoenix, Arizona. The property is comprised of all 2 Bed / 1 Bath units, and is well located in North Phoenix. The interiors had been updated, and Tower’s client plans on increasing the value by upgrading the exterior.

Challenge:

Tower’s client wanted a fixed rate permanent loan, but the property’s historical financials didn’t support a typical permanent loan at 75% LTV.  On top of that, the property had 2 units vacant, bringing the occupancy down to 90%.  Tower Capital found a lender that could underwrite a permanent loan today, based on the future proforma by the borrower.  As an added bonus, there is no pre-payment penalty, allowing the borrower to sell or refi at any time he chooses.  In summary, this loan provided the advantage of a perm loan with a fixed rate, along with the proceeds and flexibility of a bridge loan.   This is the fifth loan Tower Capital has structure for this client.