Tierra Luna (48 units) and Tierra Sol (40 units) is an 88-unit multifamily asset located in Tucson, Arizona. The properties were built in 1971 and 1970 respectively. The community features 4 studio units, 8 one-bedroom units, 20 two-bedroom units, and 56 three-bedroom units. It offers residents amenities such as community swimming pools, multiple laundry facilities, and a barbeque area.

Tower Capital’s client, an experienced California-based investor, has acquired the property. Tower successfully secured the 5-year, 4.25% fixed rate loan through a local Credit Union on behalf of the buyer. The waived prepayment penalty provides the borrower with the flexibility to sell the property upon stabilization of the asset, or refinance the property for a return of equity.

Challenges:
The age of the property, submarket location, small loan size, and historically low occupancy (less than 80%) limited the lender pool significantly. By utilizing and leveraging Tower Capital’s lender relationships and highlighting the borrower’s real estate resume, our client was able to bypass the need for a costly bridge loan.