Tower Capital recently facilitated a $5,650,000 bridge loan for the acquisition and rehabilitation of the 48-unit, garden style Wilshire Place multifamily property. The property is highlighted by upgraded landscaping, an onsite pool and its close proximity to the retail, dining and entertainment amenities along the Interstate-17 corridor. Situated just west of I-17, Wilshire Place enjoys direct access to all areas of Phoenix’s employment and entertainment corridors, as well as convenient access to the metro light rail. The property features 48 units, of which 50% of the units are the one bedroom/one bathroom floorplan, with the remaining 50% as the two bedroom/one bathroom floorplan.

The borrower, who purchased the property in an off-market transaction, intends to capitalize on bringing below-market rents up to market and taking advantage of significant capital improvements from a few years ago, while also seeking additional value-add opportunities through the installation of a new roof, adding solar screens, buying new pool furniture, upgrading the existing project signage and renovating the interior units to add microwaves, in-unit washer/dryers, new faucets, flooring, ceiling fans and other fixtures. In addition to the extensive capital improvements planned for the property, the borrower intends to take advantage of operational efficiencies through their significant management expertise for similar multifamily properties in the immediate area.

The short-term bridge loan provided the borrower with a loan amount equal to 81.9% of the total acquisition and rehabilitation cost, as well as a flexible prepayment structure to meet the borrower’s investment objectives.

Tower Capital was able to successfully source the bridge financing on behalf of the borrower within an extremely critical timeframe. Tower generated a competitive lending environment, which ultimately delivered the best pricing and terms for the borrower and was able to successfully close the transaction within 3-weeks.