PHOENIX, AZ--(Marketwired - Feb 6, 2017) - Capital Fund 1, Arizona's premier private money lender, announces a land bridge loan for a new apartment complex in Phoenix, Arizona. The 300-unit project, located just north of the Pima Freeway (Route 101) in Deer Valley will begin production when they acquire construction financing.
Capital Fund 1 CEO Michael Anderson states, "With the Capital Fund bridge loan program, the developer was able to secure financing, while they work on acquiring construction financing."
Even though multi-family projects are extremely popular in the Phoenix/Scottsdale area, construction loans from traditional banks are a challenge to obtain, despite the thriving market. Capital Fund 1 takes pride in being a local company that can move quickly on financing requests.
Rents are growing quickly in cities like Phoenix, which are finally recovering economically and have seen relatively little new construction since the housing crash. "Phoenix we are predicting to have the strongest rent growth of any metro as it was late to the recovery," says Ethan Vaisman, real estate economist with research firm the CoStar Group. In fact, Phoenix was ranked fourth across the nation for annual rent growth in 2016.
The Phoenix metro area saw $3.6 billion in total multifamily transactions, involving 10 units or more per property, through the end of the third quarter of 2016, according to a new report from ABImultifamily.com.
The transactions represent a 51% increase from 2015 and an 88% increase from 2013, according to Thomas M. Brophy, Director of Research, for ABImultifamily.com.
The report claims Arizona has been the prime benefactor of apartment investors getting priced out of expensive West Coast markets.
Capital Fund 1 is making a substantial contribution to this rebounding housing market. They have provided financing to a variety of investment real estate properties. Capital Fund 1 is an asset based lender, resulting in fast approvals -- some in as little as 24 hours. The company assists with land acquisition, multi-family, construction loans, land loans and apartments.
The Phoenix MSA, is still an average of 7% below peak 2007 pricing. Despite Phoenix's robust multifamily construction growth, with total unit inventory increasing nearly 5% from 2013 to 347,620 units (10+ unit properties), has not stopped Phoenix from reaching historic occupancy and average per unit rental amounts at 95.6% and $970 respectively. Additionally, the Metro is leading in renter retention, which at nearly 55% is some 3% higher than the national average.
As the Phoenix metro area continues to thrive, private money lenders like Capital Fund 1 will play an increasingly important role in maintaining growth in this important real estate sector. For more information on Capital Fund 1, please go to: www.CapitalFund1.com.