Tower Capital has secured a $995,000 Acquisition loan for an 8-unit multifamily property located in Tempe, Arizona near Arizona State University. The property was originally completed in 1972 and has was renovated by the seller in 2018.

The 12-year loan provides the borrower with 5 years of interest only payments. Leverage was limited to 65% LTV in order to offer the borrower with a lower interest rate, more years of interest only payments, and fewer COVID-related holdbacks than a full leverage loan would have. Closing costs were included in the financing, which equated to 69% of the actual price paid for the property.

Tower Capital’s client was a California-based investor who had experience renovating, leasing, and selling high-end single-family properties in the Bay area, but did not have any previous multifamily experience. Tower’s team was extremely hands-on, guiding the borrower and his team through the loan process to ensure a smooth and successful closing.