Tower 16 Capital Partners, a company based in San Diego, recently completed a refinancing deal worth $128 million for their four-property multifamily portfolio. This portfolio consists of almost 1,000 units located in the Inland Empire and suburban Phoenix areas. The new loans are fixed-rate agency loans with five-year terms and full-term interest-only at a rate of 5.69%. They were obtained without any cross-collateralization.
The Fannie Mae agency loans were secured through the efforts of Peter Griesinger and Chris Kramer from Newmark. The properties included in this portfolio are Ardella on Chagall (384 units) in Moreno Valley, Ardella on 67th (276 units) in Glendale AZ, Ardella at Reche Canyon (104 units)in Colton CA,andArdella at Reche Ridge(110units), also locatedinColtonCA.
According to Tyler Pruett,Tower16’sco-founder,”We have seen an improvement indemandfor apartments across our entireportfolio.” He further added that they have been able to increase rents while maintaining healthy occupancy levels which is very encouraging for them as investors.Tyler also mentioned that given the current state of capital markets,it was wise to focus on operations within their control rather than selling off these properties.This will help drive NOI growthand ultimately add value to their investment.
