Tower Capital recently facilitated $4,148,000 acquisition financing for the acquisition of a recently renovated 31-unit multifamily property in the heart of Midtown Phoenix. The property, branded Vintage Tempe, consists of 13 one-bedroom/one-bathroom floorplans and 18 two-bedroom/one-bathroom floorplans, averaging 716 SF. The property recently underwent extensive exterior and interior remodeling throughout 2017 and 2018 and boasts an irreplaceable location blocks from the Arizona State University Tempe campus.

The borrower, who purchased the property in an on-market transaction, intends to hold onto the asset long-term and assimilate it into their portfolio of other successful multifamily investment properties that they own throughout the Phoenix Metropolitan Area, as well as parts of Canada. In addition to capitalizing on implementing operational efficiencies through their expertise in managing this type of asset, there is value-add opportunity through completing the full renovations of the interior units for the remaining units that were only partially renovated at the time of purchase. The full renovation of the interior units aims to include most, or all, of the following upgrades in each unit; stainless-steel appliance packages, quartz countertops and backsplashes, new cabinets with soft-closing hinge drawers, vinyl plank flooring, new light fixtures and ceiling fans, new carpet, two-tone paint and high-speed Wi-Fi connectivity.

The 5-year fixed rate loan will provide the borrower with permanent, fixed rate debt at a low interest rate of 3.32%. Tower Capital was able to successfully leverage multiple different lenders to compete for this loan opportunity, which ultimately delivered the best pricing and terms to the borrower based upon their investment objectives for this particular asset.