Berkadia secured a $26 million cash-neutral refinance for Redondo Tower, facilitating its conversion from an apartment complex to condominiums in downtown Tucson, Arizona.

Target Information

Berkadia has successfully facilitated a $26 million cash-neutral refinance for Redondo Tower, a 96-unit high-rise residential condominium located in the heart of downtown Tucson, Arizona. This refinancing was secured through a debt fund on behalf of Vertical Street Ventures, a California-based investment firm, and was finalized on May 19, 2025. Notably, the refinancing features a full-term interest-only payment schedule and is sized at 65% loan-to-value based on the property's total market value.

Originally built as condominiums in 1961, Redondo Tower has functioned as an apartment complex in recent years. The property boasts 96 fully renovated residential units and offers a unique mid-century modern high-rise living experience. Additionally, it includes four business units, providing diverse options for residents and potential commercial partners.

Industry Overview in Tucson, Arizona

The real estate landscape in Tucson, Arizona, is currently influenced by a variety of factors. While apartment values throughout the region have faced challenges due to external market pressu