South Mountain Square is a 117 unit “B” class multifamily property built in 1986 and located in Phoenix Arizona. The borrower acquired the property in 2013 through a distressed note purchase and has successfully executed a business plan that has stabilized the property and increased operational performance substantially. A number of capital improvements have been performed to the property which include replacement of the HVAC units, resurfacing the parking lot, landscaping, plumbing, pool remodel, and unit interior renovations. The interior of the units feature new cabinetry, countertops, interior paint, and appliances. The borrower is an experienced, local, full service real estate investment firm that owns and operates a variety of real estate assets throughout the Phoenix metropolitan area including land, single family residential, multifamily, hotel, and office properties.

The $4,750,000 loan allowed the borrower to recoup the costs of the capital improvements and provide a return of equity back to its investors. The new lower interest rate provides greater cash flows and returns to the borrower moving forward.