Loan Assumed on Apartment Buy

PHOENIX-The buyers of the 98-unit Silver Tree Apartments agreed to assume the property’s $1.6 million loan for one reason: its low interest rate. Investors Ambrosie & Susana Halmagean of Litchfield Park AZ found that the interest rate on the 1980s complex was lower than the available debt on the market.

According to Alon Shnitzer with Orion Multifamily Group, the $2.9 million Silver Tree Apartments transaction is representative of a potential trend, that of more assumable loans coming to market as debt becomes more expensive. “Interest rates since early May 2013 have increased approximately 100 basis points,” he tells GlobeSt.com. “With recent interest rate and lender spread increases, debt has become more expensive.”