Eastern Union Funding has brokered a $25.6 million loan from Bank United for SKYC Management’s purchase of a Bronx apartment portfolio.
SKYC has purchased 659, 665 and 690 Allerton Avenue from Dalan Management for $34.3 million. The three-building package totals 170,000 s/f and contains 145 apartments and 23 retail spaces.
Citicore’s Timour Shafran brokered the deal on behalf of the seller while Rosewood Realty Group’s Aaron Jungreis represented the buyer.
Eastern Union president Ira Zlotowitz and senior managing director Michael Muller negotiated a non-recourse, five year, $25.6 million loan for SKYC with a rate of just three percent with one year interest-only. The loan was brokered with Bank United.
“It was a high-profile transaction for a well-performing asset with extensive retail frontage,” Zlotowitz said. “As such, we locked in an aggressive rate. On behalf of the team at Eastern we’re excited to announce this transaction.”
Bronx-based SKYC Management already owns a portfolio of 30 properties. According to Zlotowitz, the company is planning to renovated the Allerton Avenue propreties for a long-term hold.
Spokesperson Matt Matilsky added, “Even though rates are typically higher for mixed-use properties, we have a close relationship with the lender. It was our opinion that the deal was worth competing for, and we were able to offer a highly competitive three percent rate.
“We’re enjoying an abundance of five year money in the three percent range lately, but given the fed’s plan to raise rates in the fall, the ability to lock in 3 percent interest will decrease shortly. Our client was smart to act now.”