Eastern arranges $36M Bronx high rise finance

Real Estate Weekly,  May 16, 2007  

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Eastern Union Commercial Real Estate has arranged $36,500,000 in financing for the acquisition of 2 high rise residential buildings in Bronx NY.

The two buildings, one a 17 story building and the other one a 15 story building are adjacent to each other, combined they total 490 units.

The purchaser saw strong potential to turn the deal around and realize the upside as the buildings income is currently below market. In addition the borrowers plan to put a big emphasis on rehabilitation, with a substantial amount of money going into sprucing up the apartments as well as all of the common area.

Eastern Union was able to match the purchaser with a lender that recognized the earning potential, the experience and strong financial position of the borrower. E.U.C. was therefore able to secure the borrowers 85% of all his transaction cost, with a rate of 97 basis points over the 10yr UST bill, as well as having the full term of the loan interest only.

Although the quote had been given months prior to closing and in the interim spreads widened dramatically with all of the lenders deals seeing an increase in rate, Eastern insured that the lender did not increase the pricing despite the movement in the market.

COPYRIGHT 2007 Hagedorn Publication
COPYRIGHT 2008 Gale, Cengage Learning