Tower Capital recently facilitated $3,360,000 in acquisition financing for the purchase and rehabilitation of 7882 E Gray Rd, a 16,380 square foot freestanding office building in the heart of the Scottsdale Airpark. The project is situated extremely close proximity to an abundant mix of restaurant, retail, health and wellness, and daily-need amenities within a short walk or drive. The Scottsdale Airpark is the largest business hub in the entire Phoenix MSA with over 20,000 businesses operating within the immediate Airpark area, in addition to the Scottsdale Airport which is one of the busiest municipal airports in the entire country.

The majority of the building’s premises will serve as the borrower’s new national headquarters office for their law practice, with the balance of the building being leased out to one or more tenants. The loan proceeds will be used to cover the acquisition and proposed capital improvements to the exterior and interior of the property. In addition to the space that the borrower will occupy within the building, the borrower intends to build out two creative spec suites for lease and make significant improvements to the exterior of the property.

Tower was able to source a local bank that could offer an extremely low fixed rate and 12-months of interest-only at maximum loan-to-cost. The initial 12-months of interest-only will provide the borrower with a less capital-intensive structure in the first year of term to allow for buildout, lease-up, and stabilization prior to making their usual debt service payments.