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Debt & Equity

Eastern Union closes on trio of loans for $74M

A two-person broker team with Eastern Union has closed three transactions valued at a total of $74.3 million. Two of the deals were in Alabama, and the other in Florida.  

The financing was secured by the company’s “President’s Team” comprised of company president Ira Zlotowitz together with Michael Wyne, Eastern Union’s senior vice president of capital markets.

The team delivered a $25.6 million loan toward the acquisition of a 232-unit multi-family property in Huntsville, AL. The loan carried a fixed-term, 3.35-percent interest rate over a five-year period and is interest-only for the first 30 months. In addition to a highly competitive, three-month COVID reserve, Eastern Union was also able to process the loan within 45 days. The brokers were competing with several banks, as well as Fannie Mae and Freddie Mac, to secure the favorable terms.

Also in Huntsville, the Eastern Union team secured $22.7-million to recapitalize an existing bridge loan in support of an in-progress, 485-unit multi-family complex. The non-recourse financing, at an above-75/25 loan-to-cost ratio, is interest-only for the entire two-year term, with no pre-payment penalty. The transaction helped the developer attract the funding needed to finish the project and stabilize the property, which is scheduled for completion within six to twelve months. Boruch Mandel, vice president of equity, partnered with the “President’s Team” on both of the Huntsville transactions.  

Zlotowitz and Wyne also secured $26 million in bridge financing for a pair of senior-care facilities in Florida. The first was a 133-bed facility in Naples, FL providing a combination of skilled nursing and assisted living services. The second senior-care asset was a 146-bed center in Venice, FL that delivered assisted living, memory care, and skilled nursing services. Both Florida transactions were secured in cooperation with Nachum Soroka and Jacob Schonland of Eastern Union’s Healthcare Group. 

The three-year financing package for the two Florida sites was secured on a limited recourse basis at an 85-percent loan-to-value ratio. Payback was interest-only for the first 24 months. Interest was set at a competitive floating rate.

“One of these loans was with an existing Eastern Union lender who was able to push loan proceeds by several million dollars and tighten its interest rates by as much as 50 basis points less than their current lending platform would allow,” said Wyne.

“By the same token,” Wyne said, “the other two loans represented new lenders who came in with a stronger, full blend of terms than their competition out of their eagerness to get some closings on the board with Eastern Union. These two new parties closed exceptionally quickly, considering today’s financing environment.”

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