Tower Capital recently facilitated $2,529,000 in supplemental loan financing for North Mountain Foothills, a 194-unit multifamily property located near MetroCenter in Central Phoenix. Tower Capital originally structured a $14,500,000 refinance for the property on behalf of the borrower in 2019. The two-story, garden-style property is highlighted by open outdoor common areas, cutting-edge onsite amenities and its close proximity to the highly amenitized MetroCenter submarket. With an average unit size of 741 square feet, the property is comprised of studio, one, two and three-bedroom floorplans with a unit mix of 1%, 66%, 17% and 16% accordingly.

The borrower, who purchased the property several years ago in an off-market transaction has since performed a number of onsite improvements to add to the functionality and curb appeal of the overall property. The property was originally structured as fractured condominiums under multiple ownerships that the borrower has since put together. The borrower pursued a supplemental loan on the property in order to have additional liquidity for future investment opportunities.

The 10-year supplemental loan provided the borrower with a fixed interest rate starting at 5.34% based upon an approved 70% loan-to-value and is coterminous with the senior loan currently on the property. Tower Capital was able to successfully source the supplemental loan within a short timeframe and leveraged the property’s strong performance and improvements into delivering the best pricing and terms for the borrower.