Funding Purpose
Tauro Capital Advisors, Inc. was engaged on an exclusive basis to place a non-recourse bridge loan for the acquisition of a 128-unit multifamily complex in Phoenix, AZ.
Property Description
The three-story apartment has been partially renovated. The sponsor plans to make significant exterior improvements along with implementing an elevated kitchen package for select units. Each of the two buildings has an updated pool and common areas, and the property has a newly renovated management office, laundry room, and mail room.
Sponsors
This is the sponsor’s third acquisition in the market within the last 18 months. The asset is an important piece of their plan to continue to expand their portfolio and units under management.
Challenges
- Floating interest rates started to rise dramatically
- The property experienced bumpy occupancy while in escrow
Solutions
- Purchased an interest rate cap to effectively fix the interest rate
- Highlighted the ability to make significant exterior improvements to increase curb appeal
Funding
- Loan Amount: $16,100,000
- Loan-to-Cost: 68%
- Interest Rate: 30-Term SOFR + 4.50%
- Origination/Exit Fee: 10% / 0.25%
- Amortization: Non-Recourse w/ Badboy Carveouts
