Tower Capital Sees Surge In Loan Volume

Phoenix-based Tower Capital is seeing a surge in loan activity. The company has closed a record-breaking $70 million in deals in the last 30 days, and is on track to break an annual record as well. Tower closed a total of eight deals, including a $17.3 million 10-year loan for Resort on 35th Avenue with a 3.79% interest rate.

“Our strong activity over the past 30 days has been driven by robust investor demand coming to Phoenix from other markets, such as California and Denver, where cap rates and yields are much lower,” Kyle McDonough, principal at Tower Capital, tells GlobeSt.com. “Arizona is benefiting from some of the highest population growth in the nation, creating continued demand for housing and driving up rental rates and property values.”

The increasing regulatory environment in California has also fueled activity in the Phoenix area, and as a result, has fueled loan activity. “New rent control laws recently enacted in California provide further incentives for investors to flee those markets,” says McDonough. “In addition, a continued low interest rate environment and abundant liquidity in the capital markets provides additional oxygen for the commercial real estate market.”