Tower Capital recently arranged the financing for a 64-unit, fully re-positioned, garden-style apartment community located in Tempe, Arizona. Built in 1976 and recently renovated, the property consists of nine two-story rental buildings on 1.74 acres. The unit mix consists entirely of two-bedroom / one-bath units ranging from 800 to 990 square feet. Units feature in-suite laundry in all units, wood vinyl flooring, and kitchens equipped with new white shaker cabinets, quartz countertops, and stainless-steel appliances. Internet, utilities, and parking are also included. The community also provides its residents with a swimming pool, laundry room, barbecue grills, and leasing office access.

The 18-month floating rate, non-recourse, bank loan offers the borrower a low starting rate and then adjusts monthly over the 30 Day SOFR.  With 18 months of interest only payments and no pre-pay penalty, this gives the borrower plenty of time to increase the value of the property, and then sell or refinance into a fixed rate loan without paying a large pre-pay penalty.