Eastern Union closes trio of loans for $ 74 million

A team of two-person brokers with Eastern Union closed three transactions with a total value of $ 74.3 million. Two of the agreements took place in Alabama and the other in Florida.

Funding was secured by the company’s “chairman’s team” made up of company president Ira Zlotowitz and Michael Wyne, senior vice president of capital markets at Eastern Union.

The team provided a $ 25.6 million loan to acquire a 232-unit multi-family property in Huntsville, Alta. The loan had a fixed interest rate of 3.35% over a five-year period and only paid interest for the first 30 months. In addition to a very competitive three-month COVID reserve, Eastern Union was also able to process the loan within 45 days. The brokers competed with several banks, as well as Fannie Mae and Freddie Mac, for favorable terms.

Also in Huntsville, the Eastern Union team secured $ 22.7 million to recapitalize an existing bridge loan in support of a 485-unit multi-family complex under construction. Non-recourse financing, at a loan-to-cost ratio greater than 75/25, only covers interest for the entire two-year term, with no prepayment penalty. The transaction helped the developer attract the funds necessary to complete the project and stabilize the property, which is expected to be completed within six to twelve months. Boruch Mandel, vice president of equities, joined the “president’s team” on the two Huntsville deals.

Zlotowitz and Wyne also secured $ 26 million in bridge funding for a pair of senior care facilities in Florida. The first was a 133-bed facility in Naples, Florida, offering a combination of skilled nursing and assisted living services. The second senior care asset was a 146-bed center in Venice, Florida that offered assisted living, memory care, and skilled nursing services. The two transactions in Florida were secured in cooperation with Nachum Soroka and Jacob Schonland of Eastern Union’s Healthcare Group.

The three-year financing plan for the two Florida locations was guaranteed on a limited use basis at an 85% loan-to-value ratio. The repayment was only for the interest for the first 24 months. Interest has been set at a competitive floating rate.

“One of these loans was given to an existing lender in the Eastern Union, which was able to increase the loan size by millions of dollars and tighten interest rates by up to 50 basis points. less than their current lending platform allows, ”Wyne said.

“Likewise,” said Wyne, “the other two loans represented new lenders who came with a stronger and more comprehensive mix of terms than their competitors, out of a desire to make board closures with Eastern Union. . These two new parties closed exceptionally quickly, given the current financial environment.

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