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 Woodbridge, NJ.
The loan, which covers costs associated with both land acquisition and construction of a 130,000 s/f 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 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, located in the Hopelawn section of Woodbridge Township, will be operated by Extra Space Storage, a Utah-based real estate investment trust. The seller’s identify was not disclosed.
Merkin and Dollman are based in Eastern Union’s mid-Atlantic regional office in Bethesda, MD.