Eastern Union has arranged $20.4 million in refinancing toward the conversion of a six-story, 137-unit hotel in Plano, Texas into an assisted living residential community. Plano is located approximately 20 miles north of Dallas.
Based in New York, Eastern Union is one of America’s largest providers of commercial mortgage brokerage and capital markets advisory services. The transaction was originated and managed by Meir Abrahamson, a senior loan consultant with Eastern Union.
The property, which recently ceased operations as a Deluxe Inn, was formerly a Comfort Inn. It features single-loaded interior corridors, brick veneer, and wooded verges, was built in 1984 and renovated in 2005. The site has been owned and operated by Maheshbhai T. Patel since 2022. The conversion is expected to be complete by the middle of 2026.
The overall financing consists of two loans provided in conjunction with the SBA 504 program.
The first loan is a $15,779,000 primary, permanent loan that carries a term of 26 years and three months and will be fully amortized over a 25-year period. This transaction includes 15 months of interest-only payments. The interest rate equals WSJ Prime + 2.75 percent, to be adjusted quarterly.
The second mortgage is a bridge loan amounting to $4,669,000. It carries the same interest rate as the primary loan, but runs over 21 months and provides for interest-only payments over that period. The name of the lender was not disclosed.
“Coming up with a final deal structure required a considerable amount of creativity on our part,” said Mr. Abrahamson. “We had to take this back to the drawing board, making multiple modifications to ensure that the final loan structure precisely met the owner’s needs as well as the lender’s criteria.
“Furthermore, Eastern Union had to work with multiple lenders to find the one best suited to support a complex project like this.
“The principals decided to reposition the property because they wished to pursue opportunities in the senior living sector, which is currently grossly underserved in that area of Plano,” said Mr. Abrahamson. “Eastern Union delivered highly desirable terms thanks to our extensive experience in construction finance, our track record in support of senior housing assets, and our knowledge of the lending universe.”
To help bring the transaction to a successful conclusion, Mr. Abrahamson also negotiated with the bridge lender to obtain an extension of the deadline for repaying the bridge loan.
Founded in 2001, Eastern Union is a national commercial real estate firm that provides both financing services and capital markets advisory services. It 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, healthcare, hospitality, manufactured home properties, single-family rentals, investment sales, and — handled in conjunction with company affiliate Eastern Equity Advisors — equity placement.
