Eastern Union arranged financing for the $16.9 million sale of the 600,000 s/f Magna International portfolio, a group of four automobile parts manufacturing facilities situated in multiple locations in Iowa.
Abe Kolman, a senior loan analyst with Eastern Union, delivered loans facilitating the sale of the properties by Toronto-based Granite REIT America to Beau Pere Real Estate LLC of Elmsford, NY.
The buyer faced the imminent expiration of capital gains tax benefits associated with a Section 1031 exchange. Kolman arranged the approval within a three-and-a-half-week period.
The properties faced various environmental issues and were subject to short-term leases.
Kolman secured a 4.5 percent interest rate with a four-year term on two parcels with only four years left on their leases.
He also arranged for a 4.75 percent interest rate with a seven-year term on the two other associated sites, which had seven years remaining on their leases.
The transaction was closed with a loan-to-value ratio of 75 percent, with financing provided by Bank of the West.