Eastern Union Secures $38.5 Million for Warren Manor Apartments
In a significant move for the multifamily sector, Eastern Union, one of the prominent commercial real estate mortgage brokerages in the United States, has successfully arranged a refinancing loan of
$38.5 million for the
Warren Manor Apartments, a sizable property situated in
Warren, MI. Warren, located about
18 miles north of Detroit, is home to this extensive 479-unit complex that spans
388,675 square feet of rentable area across
30.72 acres of land.
Alex Jaffa, a senior loan consultant at Eastern Union, played a pivotal role in this transaction, collaborating closely with loan consultant
Sinai Eizikovitz. The refinancing deal is notable for its structured approach, which provisions the borrower with initial funding of
$35.7 million with potential access to an additional $2.8 million contingent on rising rental revenues over the term of the loan.
Transaction Details
The financial arrangement includes a
five-year fixed term with the first year exclusively focusing on interest payments. A prepayment penalty of
one percent is applicable only within the initial two years of the refinancing period. The loan was facilitated through
Bellco Credit Union, although the specific interest rate and the identity of the borrower remain undisclosed.
Jaffa stated, “This transaction was coming out of a high-interest-rate bridge loan. The property was not at full occupancy.” He further highlighted Eastern Union's adept negotiation skills that enabled a significant cash-out for the borrower, even in a climate where lenders are generally hesitant about larger cash-outs. Additionally, this strategy provides flexibility through a light prepayment model while permitting additional funds as the property reaches stability.
Property Overview
Originally constructed in
1969, Warren Manor comprises
twelve two-story buildings and a
single-story pool house, housing
295 one-bedroom and
184 two-bedroom units. The average unit size is approximately
811 square feet, offering ample space for residents. Notably, since
2023, the current ownership has invested around
$5 million in capital improvements, enhancing the living conditions and amenities on-site.
Warren Manor's extensive facilities and the strategic refinancing will likely improve its appeal to prospective tenants and bolster rental income, serving as a valuable asset in Eastern Union's portfolio of multifamily properties.
About Eastern Union
Founded in
2001, Eastern Union has established itself as a force in the commercial real estate market, employing over
90 professionals who close billions in transactions annually. Their vast network and market insight enable them to secure competitive rates and favorable terms for their clients. Their portfolio of financed transactions includes a variety of deal types, ranging from
multifamily and commercial mortgages to more complex agreements involving
structured debt, equity placement, and more. For more detailed information, visit
Eastern Union's website.
In conclusion, this refinancing not only stabilizes the financial standing of Warren Manor Apartments but also reflects Eastern Union's intent to foster growth and sustainability in the multifamily sector, setting an example for similar ventures across the U.S.