Eastern Union Funding Closes $46.57M Construction Loan for South Jersey Townhomes
- May 02, 2014
Howell, N.J .—Robert Weiss of Weiss Properties received a $46.57 million loan for The Avery, a rapidly growing townhome community located at 10 Lincoln Square in Willingboro, N.J. This project will total 450 units upon completion.
Shaya Ackerman of Eastern Union Funding, one of the country’s largest private mortgage brokerage companies serving the national commercial real estate sector, brokered a revolving $40 million construction loan with an additional $6.575 earn-out. Construction will span four phases, and Ackerman negotiated a structure allowing each completed phase to automatically convert to a full permanent loan.
Provided by Investors Bank, the loan features an interest rate of 4.5 percent, with the perm loan portion set at 3.5 percent with a seven-year term and 30year amortization schedule.
Ackerman also previously arranged two separate perm loans for the first phases of the project, one in November 2013 and another the previous summer. Those deals provided $11.5 million and $11.1 million respectively, each covering the construction of 72 units. These 144 units are now fully occupied.
“From the financing end it was double play between Shaya’s structuring abilities and Eastern Union’s great relationship with Investors Bank,” says Eastern Union’s President Ira Zlotowitz. Zlotowitz added that the bank was “very much on board” with The Avery, where most of the units are complete with wood plank-style flooring, granite countertops and expansive balconies and patios.
WIllingboro is tucked between Moorestown and Burlington Township not far from Philadelphia. Its main artery is Route 130. Until recently, this area was mainly farmland, but it has seen a flurry of development over the past few decades, escalated further by recovery efforts following the economic downturn.
“This deal was the natural extension of the initial debt, and with Ackerman’s unique structure we wrapped the remainder of the project into one facility which addresses both construction and permanent financing,” Weiss said. “This was truly a custom suit on Madison Avenue.”
BMC Capital provides a $1.32M cash-out loan for student housing property
Austin, Texas—Patrick Short of BMC Capital’s Austin office has arranged for $1.32 million cash out refinance loan for a student-based multifamily property located in Austin, Texas.
The loan featured a 65 percent LTV, 10 year fixed rate at 5.20 percent and a 30 year amortization. The loan was arranged through one of BMC Capital’s correspondent banking relationships.