Tower Capital recently secured a facility for its client to acquire 7 multifamily properties totaling 23 units in one of the last areas of downtown Scottsdale that has yet to undergo redevelopment.  The neighborhood is located on the northeast corner of Scottsdale and Camelback Roads and rests on the northern boundary of Scottsdale’s Entertainment District, home to numerous shops, restaurants, and nightclubs. It is walking distance to major area amenities such as the W Hotel, Fashion Square Mall, and the future site of a planned Caesar’s Hotel.  Earlier in the year, Tower’s client, a local, experienced, value-add investor, acquired a few other properties in the neighborhood and has plans for a future mixed-use project consisting of hotel, apartments, and retail.

The financing arranged by Tower allowed the borrower to acquire the 7 properties (from 6 different sellers) over a 1-month period through multiple escrows under one loan. The loan has no prepayment penalty and afforded the borrower with maximum flexibility to execute their business plan. The borrower plans to lightly renovate the properties to maximize cash flows while they solidify plans for the future redevelopment.