Tualatin Multifamily Borrower Intends to Deploy Capital for Upgrades
A $15.6 million acquisition and rehab loan was recently arranged for a 74-unit garden-style multifamily property in the Portland suburb of Tualatin. The borrower, who purchased the property in an off-market transaction, intends to deploy the capital to upgrade the remaining 66 partially renovated units as well as capitalize on implementing operational efficiencies. Tower Capital arranged the financing.
“The new renovations will allow the community to enjoy the picturesque landscape and updated units, while being able to explore the surrounding shops, restaurants, stunning walking paths and other community amenities,” says Adam S. Finkel, principal and co-founder of Tower Capital.
With an average unit size of 976 square feet, the property is comprised of one-, two-, and three-bedroom floorplans with a unit mix of 23 percent, 58 percent and 19 percent, respectively. The interior renovations are set to include stainless steel appliances, lighting fixtures, plumbing fixtures and tile backsplashes in the kitchens. The borrower also plans to make targeted improvements to the exterior of the property as well as within the common areas with the goal of enhancing the property’s general image and curb appeal.
The three-year bridge loan provided the borrower with a floating interest rate starting at 3.2 percent based on 75 percent loan-to-cost. Tower Capital also introduced the client to a limited partner who provided $4 million of capital with a 10 percent preferred return and graduated waterfall structure. Tower Capital sourced the bridge financing on behalf of the borrower and sourced additional LP equity for the acquisition within 75 days. Tower Capital generated a competitive lending environment with more than 10 lenders quoting the opportunity.