Tower Capital arranged $23,075,000 in permanent financing for the refinance of North Mountain Foothills, a 194-unit multifamily community in Phoenix.
North Mountain Foothills, located at 1943 W. Aster Drive, was a broken condominium project when the borrower first started purchasing the units between 2010 and 2012. After acquiring 100% of the units, the HOA was dissolved, and the property has been operated as a traditional multifamily complex serving the workforce community.
Over the years Tower’s client has performed significant renovations throughout the exterior and interior of the property, with significant mechanical, electrical, and plumbing upgrades, effectively repositioning the asset in the market.
The communities’ floor plans range from studios, as well as one- to three-bedroom apartment homes. The site is near restaurants, schools, parks, and major employers. The family-oriented and pet friendly property offers Mountain views and spacious living. Community amenities include a resort-style pool, BBQs, an on-site laundry and a basketball court.
Tower Capital’s team executed a competitive marketing campaign which included Fannie Mae, Freddie Mac, CMBS, and alternative lenders in order to maximize the cash out the borrower, who plans to continue with the property renovations.
“The current interest rate environment has required many borrowers to inject additional equity into deals when refinancing,” said Tower Capital’s Adam Finkel, CCIM, Managing Partner, and Co-Founder. “However, Tower was able to generate a substantial cash-out for the Sponsor, which was achieved through our competitive marketing process and proactive, hands-on approach with both the lender’s underwriting team and the appraiser.”
The Sponsor, a repeat client of Tower Capital, had many lenders reaching out to them directly for the financing, however, they ultimately decided to leverage Tower’s extensive network of unique and active capital providers to generate more competitive terms.
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