Eastern Union, one of America’s largest commercial real estate mortgage brokerages, has arranged a $38.5-million loan to refinance Warren Manor Apartments, a 479-unit multifamily property at 21516 Dequindre Road in Warren, Michigan. Warren is situated 18 miles north of Detroit.
The mortgage on the property, which encompasses a net rentable area of 388,675 square feet on a 30.72-acre parcel of land, was secured by senior loan consultant Alex Jaffa and loan consultant Sinai Eizikovitz.
The full loan amount included initial funding of $35.7 million, with the ability to earn an additional $2.8 million as rental revenues rise. The refinancing carried a five-year fixed term with one year of interest-only payments throughout that period. The transaction carried a one-percent prepayment penalty over the first two years only.
Financing was provided by Bellco Credit Union. Neither the interest rate nor the identity of the borrower was disclosed.
“This transaction was coming out of a high-interest-rate bridge loan,” said Mr. Jaffa. “The property was not at full occupancy. Eastern Union successfully negotiated a large cash-out for the borrower in a market where lenders are shying away from large cash-outs. We provided the borrower with flexibility through a light prepay, while allowing for additional proceeds once the property stabilizes.”
Built in 1969, the apartment complex comprises twelve two-story apartment buildings and a one-story pool house, with 295 one-bedroom units and 184 two-bedroom units. Average unit size equals 811 square feet.
Founded in 2001, Eastern Union is a national commercial real estate firm that employs more than 90 real estate professionals and closes billions of dollars’ worth of transactions annually. Eastern Union leverages its relationships with lenders and its marketplace knowledge to secure the best available rates and terms.
Eastern Union secures financing for transactions of all sizes across the United States. Transactions, which can include multi-state and multi-site portfolios, encompass conventional commercial mortgages, structured debt, multifamily, office, retail, healthcare, hospitality, manufactured home properties, single-family rentals, self-storage, and — handled in conjunction with company affiliate Eastern Equity Advisors — equity placement.
