Tower Capital recently secured an $18,000,000 loan on a 304-unit multifamily property located in Phoenix, Arizona. The borrower acquired the asset in 2014 and has since performed significant capital improvements to completely rebrand the property. These improvements include a total exterior facelift and new flooring and appliance packages to the interior of 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.