Eastern Union Funding arranged acquisition financing for two apartment communities in Lancaster, Pa., on behalf of Lakewood, N.J.-based AJH Management.
This is a westward expansion for the investor, which now owns 1,500 units on the Jersey Shore and throughout eastern Pennsylvania. The transaction was also its largest to date.
Eastern Union Funding senior vice president of banking relationships David Singer arranged a Fannie Mae 7-6 ARM loan through Arbor Commercial Mortgage to finance the purchase of the Class A properties, which were being sold by Summit, N.J.-based The Solomon Organization.
Quail Run Apartments is a 136-unit complex and includes pet-friendly apartments, a children’s play area, laundry, on-site maintenance, a state-of-the-art fitness center and nearby public parks. Stone Mill Station is a 125-unit community which also includes pet-friendly apartments and on-site maintenance, and is convenient to Routes 30 and 222, downtown Lancaster and public transportation.
“This transaction represents investors’ voracious appetite to go beyond primary and secondary markets in search of multifamily apartment deals, one of the most sought-after asset classes in real estate,” Singer said.
“Lenders are also hungry for this type of product, as shown by AJH’s ability to close on high-leverage, 80 percent loan-to-purchase financing.”
Singer worked with Arbor Commercial vice president Stephen York to underwrite the loan, which includes a one-year lockout and 1 percent pre-pay thereafter, and was priced 2.67 percent over LIBOR. AJH Management plans to convert the loan to a fixed rate after 1 year.