#United States #Eastern Union #River Rock Apartments #Mishawaka

Eastern Union Makes Waves with $15.9 Million Financing in Mishawaka

In a significant development in the commercial real estate sector, Eastern Union has successfully arranged a noteworthy financing deal worth $15.9 million for the conversion of the River Rock Apartments into condominiums. This project, which is located at 116 West Mishawaka Avenue in Mishawaka, Indiana, comprises a mixed-use property that features a total of 82 residential units and eight commercial units.

Project Overview

River Rock Apartments stands tall with five floors and encompasses 79,775 square feet dedicated to residential spaces, while an additional 4,385 square feet is allotted for commercial use, which will continue to operate post-conversion. The property, built between 2015 and 2016, also boasts a sky-high 31,027-square-foot parking garage, all situated on a 1.61-acre parcel of land. As the project moves forward, this financing will support the transitional phase successfully, transforming these apartments into condos and thereby enhancing property value in the area.

Financial Details

The loan, arranged by Joe Siegfried, a loan originator at Eastern Union and a member of the company’s prestigious President’s Team, comes with a three-year, interest-only structure carrying an 8% interest rate and a 75% loan-to-value ratio. Importantly, it includes no prepayment penalties, allowing greater flexibility for the current property owners, who have not been publicly revealed. This strategic arrangement is crucial for the borrower’s business plan, affording them the ability to implement a sell-off strategy for the condominium units effectively.

Siegfried remarked, "This transaction supported the borrower's business plan by securing the best possible full-leverage, interest-only financing.” This kind of financial strategizing is symptomatic of Eastern Union’s dedication to aligning with client goals.

Eastern Union’s Expertise

Founded in 2001, Eastern Union has risen to become one of the largest commercial real estate mortgage brokerage firms in the United States, boasting over 90 real estate professionals who are adept at navigating transactions worth billions annually. They remain focused on leveraging their extensive relationships with lenders, ensuring the best rates and terms for each client.

The firm has broadened its scope by engaging in transactions of various scales across diverse property types, including multifamily, office buildings, retail, healthcare, hospitality, and more, thereby establishing a robust reputation in the industry.

Siegfried's recent notable deals include a $10 million refinancing for an owner-occupied property in Pennsauken, NJ, and a $4.25 million office acquisition in West Palm Beach, FL. His expertise extends further into complex transactions involving properties facing challenges such as defaulted loans or those requiring special-use construction projects.

The Importance of Mixed-Use Developments

The River Rock Apartments project exemplifies the burgeoning trend of mixed-use developments in urban areas. These projects not only provide housing but also foster community engagement by integrating commercial spaces within residential areas, which leads to a more vibrant neighborhood environment.

Conclusion

The financing secured by Eastern Union marks a crucial step in the transformation of River Rock Apartments and speaks to the broader trends in the real estate market emphasizing mixed-use properties. As urban environments evolve, the need for versatile, community-centric developments continues to grow.

For more information about Eastern Union and its offerings, visit Eastern Union's official website.