Pueblo Springs is a 75-unit class “C” garden style apartment complex located at 3003 N. Alvernon Way in Tucson. The seller was an out of state investor who was not maximizing the property’s potential, with 16% vacancy at the time of purchase. Towers Capital’s client, a local, experienced sponsor with a growing multifamily portfolio, acquired the property in an off-market transaction for $2,460,000. The all-in the total project cost is estimated to be $2,890,000 or $38,533 per unit. The borrower plans on spending around $430,000 in capital improvements, which include new exterior paint, parking lot and branding, along with the installation of energy efficient low flow toilets, thermostats, and solar panels. These renovations will allow the borrower to increase rents and decrease expense costs, thereby boosting NOI and value of the property.
The Private Loan secured by Tower Capital was closed in 30 days, with no 3rd party reports required. In addition, the lender allowed a subordinated mezzanine loan up to 80% loan-to-cost, limiting the amount of equity needed to be raised from investors.
