Warren West is a 77 unit apartment project and Casa De Warren is a 48 unit apartment project, both located in Albuquerque, New Mexico. The properties were acquired for a combined purchase price of $3,750,000 or $30,000 per unit.
The properties were a legacy assets that had suffered from years of neglect and were not performing to their full potential. Seeing an opportunity, Tower’s client, a multifaceted, Southern California based, commercial real estate Investment Company, has acquired the properties with a plan to renovate and lift rents and occupancy. Their extensive capital improvement budget includes new signage, landscaping and common area upgrades, installation of security gates, fitness center upgrades, new exterior paint, and interior unit renovations.
The two-year bridge loan provides the borrower with interest only payments based upon a rate of 5.85% and no prepayment penalty. Working on a tight time frame and having 3rd party reports in hand, Tower Capital was able to secure bank financing to close the loan in less than 2 ½ weeks – a situation that would typically be financed by a higher interest private capital source.
