Tower Capital recently facilitated $1,750,000 in financing for the refinance of the 16-unit, 100% occupied, multifamily property resting in the heart of Midtown Phoenix. The project is situated extremely close proximity to an abundant mix of restaurant, retail, health and wellness, and daily-need amenities within a short walk or drive. The unit mix consists of 10 one-bedroom/one-bathroom units, 5 studio units, and a single two-bedroom/one-bathroom unit. Current ownership made significant capital improvements to the property since originally acquiring the property in 2021 via an all-cash transaction.

The borrower intends to hold onto the property long-term and capitalize on robust submarket fundamentals and rising rental rates for comparable renovated properties of a similar unit count in the immediate area.

Challenge

The challenge with this transaction was identifying a non-recourse lender who was comfortable with lending to a China-based foreign national borrower. Additionally, the extreme difference in time zones and the difficulty of the borrower having to book a notary signing for loan docs about a month in advance of closing, made the logistics exceptionally tricky. Tower was able to successfully source the financing by finding an agency lender who could provide the borrower with extremely low fixed-rate, non-recourse perm debt.