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Debt & Equity

Finance broker says it’s harvest time in the outer boroughs

Real estate finance brokerage Eastern Union Funding has executed a four-set of deals which reflect a flourishing real estate climate in the outer boroughs.

Managing director Jonathan Singer represented Delaware-based BPS 5 LLC’s debt assumption for a $24 million purchase of a five contiguous building portfolio in the Bronx, consisting of 206 total units. The buildings are located at 922-926, 932-934, 938-940, 944 Bronx Park South, and 2137 Vyse Avenue.

Vyse Avenue in The Bronx
Vyse Avenue in The Bronx

Singer negotiated an exact amount of $15,160,768 for the buyer, who essentially stepped into the seller’s shoes by assuming a 2007 loan provided by Wells Fargo on the building — a ten year deal expiring in 2017, carrying an interest rate of 5.65 percent.

“The pre-payment penalties were too steep to arrive at another solution,” Singer said. “With this arrangement, my client can earn a great deal of upside in the near future when he refinances.”

This solution — the well-timed refinancing of existing portfolios — was illustrated in another Bronx transaction this month, when Singer refinanced a property at 2471 Grand Avenue, purchased last year for $4.733 million.

This month, Singer negotiated a $4.8 million, 75 percent loan-to-value refi based on a valuation for the building that had shot up nearly $2 million.

Topping off the well-timed execution, terms were settled at a competitive 3.25 percent interest rate without recourse.
Singer also arranged a $4.763 million acquisition loan on Webb Avenue in the Bronx, featuring a 3.1 percent interest rate without recourse, and a $4 million loan for the refinance of a multifamily on 42nd Street in Queens, closing at 3.375 percent interest.

“It seems to be harvesting season in these markets right now, and on a company-wide level we’re positioning our clients to move while the industry is ripe,” said Avrom Forman, CEO of Eastern Union Funding

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