Tower Capital recently arranged $2,250,000 (50% LTC) in bridge acquisition financing for the purchase of a +1.78-acre (AC) land site in downtown Phoenix, AZ. The eventual Class A self-storage project to be developed on the site, which is slated to break-ground in Q1 2024, is estimated to take approximately 12 months and once completed, will provide much-needed new delivery of self-storage product to the downtown submarket.

Since originally going under contract on the land in 2021, the sponsor has been able to achieve preliminary site plan approval for the development of a Class A, 1,250-unit, 100% climate controlled self-storage project. The sponsors utilized the loan proceeds to cover the initial land acquisition which will allow them to work through the balance of the necessary zoning and entitlement process.

The original senior construction lender that had issued a term sheet to the sponsor ended up exiting the market due to turbulence in the capital markets which posed a critical timing issue given the sponsor’s timeline to close on the land and left them at the altar. Tower Capital was approached with a short fuse to identify and a lender who could fund within a critical timeframe and was able to procure a local private debt fund to execute on the loan after generating significant interest in the deal through a targeted marketing campaign.