Waterfront Apartments is a 288 unit “C” class multifamily property located in Phoenix, Arizona. The property was originally built in 1979 and contains a mixture of one and two bedroom units. In 2010 the property was foreclosed upon by the lender and was operated as an REO until it was purchased by Tower Capital’s client through an auction sale.

The Los Angeles-based buyer is an experienced real estate investor who owns approximately 2,000 apartment units in the Phoenix metropolitan area, along with a multitude of other assets throughout California. Their goal was to secure financing that would incorporate the purchase price for the asset plus auction fees, as well as provide capital improvement dollars for an extensive rehab planned for the property. In addition, they wanted the flexibility to sell the asset or place longer term permanent debt on the property post stabilization.

Tower utilized a capital partner that offers both balance sheet bridge, as well as agency and CMBS programs, providing the client maximum flexibility at take-out.  Since the lender will already be familiar with both the asset and the borrower, surety and smoothness of execution are maximized.