The Resort on 35th Avenue is a 272-unit garden-style apartment complex located in Phoenix, Arizona. The apartment complex offers tenants an onsite leasing office, clubhouse, tennis and volleyball court, three (3) swimming pools, a spa, two (2) laundry facilities, and high-speed internet access. Built in 1984, the property rests on a 9.79 acre site with 17 buildings and contains a well balanced mix of fifty-six (56) studios, one-hundred sixty (160) one bed/one bath units, and fifty-six (56) two bed/two bath unit types. All apartments include individual HVAC systems.
The borrower purchased the property in September of 2014 for $8,145,000 ($29,835 / unit) and has spent approximately $644,869 on capital improvements which includes an exterior facelift and rebrand, along with interior renovations in many of the units.
A recent pullback in production from both Fannie Mae and Freddie Mac has forced borrowers to seek alternative sources of high leverage, non-recourse, permanent financing for multifamily properties. One of Tower Capital’s capital partners is currently offering a “Private Label” conduit product where they are both the originator, servicer, and B-piece buyer, offering a high level of execution certainty. The 10-year fixed rate loan provides a competitive 3.79% coupon and 3 years of interest only payments. The $17,250,000 loan provided significant cash out to the borrower.
