HOWELL, N.J., May 6, 2020 /PRNewswire/ -- Eastern Union, one of the country's leading commercial real estate finance firms, has arranged $15.5 million in financing toward construction of a ground-up, 1,115-unit self-storage facility in Perth Amboy, NJ.
The loan, which covers costs associated with both land acquisition and construction of a 130,000-square-foot building, was arranged by managing director David Merkin and underwriting director Barry Dollman. Despite a backdrop of intense marketplace disruption in the commercial real estate market triggered by the COVID-19 virus, the deal closed on March 30 with the lender, Orix USA Corporation, adhering to its original terms.
The non-recourse loan was provided at 85-percent leverage.
"It's challenging to secure construction financing even under normal market conditions," said Mr. Merkin. "Eastern Union was pleased to meet our client's needs by identifying a lender that was ready to offer a non-recourse loan at a high leverage ratio. Moreover, the lender was willing to stand by its original offer, even as economic circumstances were rapidly changing."
The borrower was 112 New Brunswick Properties Urban Renewal LLC, doing business as Woodbridge Self-Storage. The facility will be operated by Extra Space Storage, a Utah-based real estate investment trust. The seller's identify was not disclosed.
Mr. Merkin and Mr. Dollman are based in Eastern Union's mid-Atlantic regional office in Bethesda, MD. Known as "Team Tropp," the office is overseen by senior managing director Marc Tropp.
ABOUT EASTERN UNION
Founded in 2001, Eastern Union is a leading national commercial mortgage brokerage firm employing more than 100 skilled brokers and real estate professionals and closing $5 billion in real estate transactions annually. Eastern Union's capital introductions are handled through its affiliate company, Eastern Equity Advisors.
Boasting one of the highest transaction volumes in the industry, the Eastern Union team leverages its close relationships with banks and its extensive knowledge of the commercial real estate marketplace to bring clients the best rates available. Eastern Union's tenacity and experience enable the company to arrange financing for complex, multi-state, multi-site portfolios, as well as loans for smaller, single-property transactions.
Eastern Union's groundbreaking commercial real estate app serves as an intelligent commercial real estate toolkit and includes features such as eCALC, which enables investors to fully value and underwrite deals instantaneously and in the palm of their hand. It is available for download in the App Store and Google Play Store.
With nationwide operations, Eastern Union is headquartered in New York, with numerous branches along the East Coast. For more information, visit www.easternunion.com.
516 652 0785
SOURCE Eastern Union