Tower Capital recently arranged the financing for a 45-unit, low-rise, 2-story apartment community located in South Phoenix. The property was built in 1985 and sits on 1.66 acres. The community features an outdoor swimming pool, leasing office, on-site laundry facility, and a barbeque area. The property has 44 large 800 square-foot 2-bedroom 1-bath units, and one 500 square foot 1-bedroom unit. Units are individually metered for electricity. The property was 98% occupied according to the selling broker.

The 20-year, non-recourse, Freddie Mac loan offers the borrower a low rate of 3.58% fixed for 10 years, followed by a floating rate period with an open prepay.

Due to the COVID pandemic, the small balance Freddie Mac program has been especially conservative. Initially they had an issue with crime at the property, and in the immediate vicinity, and there was a possibility that they would not move forward with the loan approval. The advisors at Tower Capital worked with our client to formulate a strategic plan to increase security and safety at the property moving forward, making Freddie comfortable enough to approve funding.