A two-person broker team with Eastern Union, one of the country’s largest commercial real estate finance firms, has arranged $25.75 million in bridge acquisition financing for a 232-unit multifamily asset in Jacksonville, FL. The loan, carrying a 4.1% interest rate, reflected an 84% loan-to-cost ratio for a property burdened by high renovation costs and 50% vacancy.
The site was purchased for $22 million through a three-year, interest-only bridge loan. The property requires $10 million worth of renovations.
The financing was secured by the company’s “President’s Team” comprised of company president Ira Zlotowitz together with Michael Wyne, a managing director with Eastern Union.
“Bridge loan financing typically presents special challenges because you’re almost always soliciting lenders to get behind a troubled property,” said Mr. Zlotowitz. “We needed to focus lenders’ attention on the site’s future status, not its present status.”
“Leveraging Eastern Union’s extensive knowledge of the lender universe, we generated a competitive environment around the transaction,” said Mr. Wyne. “A key need for this borrower was to maximize loan proceeds while maintaining a low and competitive interest rate, and we accomplished this.”
Bridge loans play an essential role in commercial real estate finance. Borrowers use bridge loans to meet a short-term financing need to stabilize their properties.
Interested parties may contact Michael Wyne at email@example.com with questions about commercial real estate financing.
About Eastern Union
Founded in 2001, Eastern Union is a leading, national commercial mortgage brokerage firm. It employs more than 125 real estate professionals and closes an average of $5 billion in transactions annually. Eastern Union leverages its relationships with lenders and its marketplace knowledge to secure the best available rates and terms.
Eastern Union, headquartered in New York, closes transactions of all sizes across the United States. It secures financing for all asset types. Transactions — which can include multi-state and multi-site portfolios — encompass both conventional and structured financing. In 2020, Eastern Union’s Multi-Family Group reset market pricing by offering a quarter-point fee — with a minimum fee of $15,000 and no back-end fees — for refinancing properties backed by Fannie Mae or Freddie Mac. Capital introductions are handled through Eastern Union’s affiliate, Eastern Equity Advisors.
Eastern Union’s free eCALC app instantly helps investors value and underwrite deals.
For more information, visit www.easternunion.com
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