Tower Capital recently financed the cash out refinance of a 7-unit multifamily property located in Phoenix, Arizona. The property is comprised of a mix of 1, 2 and 3 Bed / 1 Bath units, and was fully occupied at closing. The borrower is an experienced, local, multifamily investor who has owned this asset for a while and has significantly increased the NOI.

The bank loan arranged by Tower offered a 5-year fixed interest rate of 3.99% based upon a 25-year amortization schedule. Since this loan does not have a prepayment penalty, it offers maximum flexibility should the borrower wish to divest of the asset or refinance during the loan term should rates continue to fall. Additionally, the lender allowed the borrower to close on the property upon issuance of the certificate of occupancy, but before the property was stabilized.