Eastern Union Funding negotiated an $8,700,000 bridge loan for the acquisition of Dix McBride Apartments, a 130-unit multifamily in Far Rockaway, NY.
The loan was originated and arranged by Brooklyn office director Motti Blau.
The loan features a 7.75 percent rate plus libor, on a 12 month term with an option to extend six months.
The deal covers 105 percent of the purchase price, which is 92 percent of the total costs.
The property consists of five fully-occupied buildings, which were coming out of foreclosure and valued at $12.6 million. The purchase price was $8.5 million.
The client, Gershon Eichorn, is an investor with a track record for turning distressed properties into market value real estate.
This track record contributed to the near-unheard of loan-to-cost ratio featured on the deal, said Blau. “At these debt levels, any rate would have been justified, preferred returns could have reasonbly fallen in the single digits,” Blau said.
“The property is already performing well and has enormous potential to be repositioned in a strong market.