(480) 889-6100 BK-0917799  |  NMLS# 396288

Recently Funded: Multifamily Acquisition

Multi-family home
  • Loan Amount: $1,200,000
  • Interest Rate: 10.5%
  • Loan Term: 6 Months
  • Property Type: Multifamily Zoned R-5
  • Loan Type: Commercial Buy and Hold

Our borrower is very experienced with multifamily investment properties, so this 17 unit apartment complex purchase was a great investment property for our borrower.  The borrower had updated and renovated all the units in the apartment complex, and is just now starting to rent out units.  The property is in a great location off Thomas in the heart of Phoenix is sure to draw a crowd of interested renters.

The strategy our borrower utilizes to bring a profit from this investment is one they’ve put into practice multiple times.  They go into a multifamily property that has a high vacancy rate, renovates the apartment units to the modern needs of a tenant, and once vacancy is stabilized the borrower sells to another multifamily property investor who will manage the property moving forward.  This gives our borrower’s buyer a safe income property to purchase, without as much work to go into the property.

Some of the structural updates include new plumbing and electrical work, and placement of new windows and doors.  As for updates to make each apartment unit livable for the modern day urbanite new stainless steel kitchen equipment was placed along with fresh and modern cabinets and countertops.

The Central Phoenix multifamily market saw a decrease in vacancy, thanks to the growing number of companies coming into the Phoenix metro area.  With the increase in more renters, rental rates increased significantly from 2015 to 2016.  See the Collier’s multifamily report here to read more about the Phoenix’s multifamily market.

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  • 14555 N Scottsdale Rd #200
    Scottsdale, AZ 85254
  • Phone: 480.889.6100
  • Fax: 480.361.8628
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