Tower Capital arranged $24.2 million in combined financing for five multifamily properties, a hotel, and a retail property in Arizona.
The transactions involve the Sunset Ridge apartments in Phoenix, Gran Jardin multifamily property in Phoenix, the Mojave Apartments in Phoenix, the 44 May multifamily property in Mesa, the Royal Meridian multifamily in Apache Junction, a Motel 6 in Phoenix, and the Alta Vista Shopping Center in Phoenix.
Tower Capital’s Adam Finkel, CCIM, Principal, said, “Transaction activity remains high across the Metro Phoenix market as a result of population expansion and an influx of new businesses, in particular tech companies. The growth is being fueled by immigration of retirees attracted to the quality-of-life the market offers, as well as middle-class families seeking more affordable housing options than they are finding in more expensive markets.”
Phoenix grew at the fastest rate among America’s biggest cities and is now the fifth-biggest city in the United States since the last census. Phoenix’s population grew from 1.4 million people in 2010 to 1.6 million in 2020, a rate of 11.2 percent, according to the Census Bureau.
Tower Capital’s recent property financings included:
Sunset Ridge Apartments in Phoenix
Tower Capital secured a $6.25 million loan on a 95-unit multifamily property in Phoenix. The borrower acquired the asset in 2014 and has since performed significant capital improvements, which include a complete exterior and HVAC upgrades. The successfully executed business plan allowed the borrower to generate significantly higher NOI and value over the years.
Gran Jardin Multifamily in Phoenix
Tower Capital facilitated $5.7 million in acquisition financing for the purchase of the 45-unit, low-rise, Gran Jardin multifamily property located in Phoenix. Near I-10 freeway, Gran Jardin has direct access to all areas of Phoenix’s employment and entertainment corridors, as well as convenient access to Downtown and the metro light rail.
Mojave Apartments in Phoenix
Tower Capital facilitated $2.9 million in acquisition financing for the purchase of the 27-unit Mojave Apartments multifamily property located in Phoenix. Mojave Apartments is a partially renovated, 27-unit, low-rise apartment community situated along the I-17 corridor, just south of MetroCenter and North Mountain Village.
44 May in Mesa, Royal Meridian in Apache Junction, Arizona
Tower Capital facilitated a $2.6 million refinance for the 10-unit 44 May and 27-unit Royal Meridian multifamily properties located in Mesa, AZ and Apache Junction, AZ, respectively. Both properties are recently renovated, low-rise multifamily projects situated near a base of dining, retail, entertainment, health and wellness, and daily-needs amenity options.
Motel 6 Land Loan in Phoenix
Tower Capital arranged $3.25 million in financing for the acquisition of a 3.34-acre parcel of land beneath the 81-key Motel 6 located in Phoenix. The two-story project was originally built in 1965 and is situated near the Phoenix Sky Harbor Airport.
Alta Vista Shopping Center in Phoenix
Tower Capital arranged $3.5 million for the refinance of the Alta Vista Shopping Center, a Dollar General-anchored property located in Phoenix. The 18-month bridge loan allowed the borrower to pay off an existing loan and provided additional proceeds for property improvements.
Tower Capital has completed more than $580 million in transaction activity so far in 2021 and is on track to reach $800 million by year-end. The firm is poised to become a $1 billion per-year company in annual origination volume.