Eastern Union Facilitates $24 Million Refinancing for a Mixed-Use Building in Brooklyn's Flatbush Area

Eastern Union Secures $24 Million for Brooklyn Property

Eastern Union, a leading name in commercial real estate mortgage brokerage in the U.S., has successfully organized a substantial refinancing deal amounting to $24 million. This funding is directed towards a recently constructed mixed-use property located at 2508 Foster Avenue in Brooklyn's Flatbush neighborhood. The project comprises 57 residential units and two retail spaces, reflecting the dynamism and growth of this vibrant community.

The refinancing facilitates a cash-out option for the borrower, allowing them to access $6.5 million in proceeds from this arrangement. Previous financing undertaken by Eastern Union included a construction loan of $17.5 million for this property two years ago, demonstrating the firm's ongoing commitment to supporting its clients through various stages of their projects.

Motti Blau, the senior managing director of Eastern Union, led the team that worked on this refinancing. The building, which stands seven stories tall, features 55 residential apartments supported by the City of New York's CityFHEPS program—an initiative aimed at assisting individuals and families in securing and maintaining housing. This alignment with local assistance programs underscores the firm's dedication not only to real estate development but also to community welfare.

Notably, the refinancing structure is a non-recourse loan that includes a yield maintenance clause, indicating a robust financial strategy designed to minimize risk for the lender while supporting the borrower’s needs. The terms include a five-year interest-only period, with the principal amount due at the end, reflecting contemporary practices in commercial real estate finance. The loan-to-value ratio stands at a commendable 65%, showcasing prudent financial leverage in a competitive market.

For Blau, this transaction exemplifies Eastern Union's ethos of reliability and client partnership throughout complex financing processes. He remarked, "We supported the borrower throughout this two-stage process, and they knew they could count upon us as their trusted advisor." This strong relationship-oriented approach is pivotal in commercial real estate, where trust and communication are paramount.

The mixed-use property now includes average unit sizes of approximately 692 square feet and boasts a total net rentable area of 44,362 square feet. The financing agreement allows for substantial advancements in tenant services and property enhancements, aligning with Eastern Union's mission to enhance client outcomes through strategic financing.

The borrower for this transaction was 1341-1351 Flatbush LLC, while the lending institution was the Bank of Montreal. Eastern Union, established in 2001, continues to be a nationwide player in commercial real estate financing, leveraging its extensive network and market insights to secure advantageous terms for diverse projects across the United States.

In summary, Eastern Union's latest refinancing of the Flatbush property is not just a financial milestone; it reflects a broader commitment to community-oriented real estate development in New York City. As the firm continues to close billions in transactions annually, it remains poised to adapt and respond to the evolving demands of the real estate market while fostering positive client relationships.