Villa Sorrento is a 60-unit garden style apartment complex located in Central Tucson, just north of Tucson International Airport. Tower Capital secured $1,470,000 (70% LTC) in acquisition bridge financing for its client, a highly experienced Los Angeles-based real estate investor. The loan has a 12-month term at a 7.75% fixed interest rate with interest-only payments for the duration of the loan. The borrower plans to extensively renovate the exterior of the property, rebrand the property, and moderately renovate the interiors of units as they turn to decrease vacancy and increase rents.

Although the property suffered from high vacancy and little cash-flow, Tower Capital was able to negotiate not interest reserve or capital improvement holdbacks, providing ultimate control and flexibility to the borrower. Villa Sorrento will be refinanced into permanent debt before the loan matures.