Tower Capital recently refinanced a 7-unit multifamily property located in Phoenix, Arizona. The property is comprised of all 2 Bed / 1 Bath units, and is well located between Downtown and Uptown Phoenix. The borrower had originally acquired the property in 2020 with an acquisition loan financed by Tower Capital.  Since the borrower had stabilized the property at higher rents, the goal was to pull cash out to then use for another acquisition, growing his portfolio.

Challenge:

Most lenders limit cash out proceeds if the borrower has owned the property for less than 2 years.  At the same time, rates were moving up, so the goal was to find a lender that could lock in a low rate at loan application, and be comfortable with cash out proceeds.  Tower Capital found a lender that could do both, and offer non-recourse as well.  The 5 year fixed rate offers a 3.4% rate fixed for 5 years, and then floats for 30 years so the borrower is never forced to make a balloon payment.