F inancial D igest F eaturing C reative F inancing
M id A tlantic Real Estate Journal — June 2023 — 19A
www.marej.com
ETHESDA, MD — Based in Bethesda, MD, the Eastern Financing was provided for multifamily, single-family rental, retail, and industrial assets Eastern Union’s Mid-Atlantic office closes $75 Million in financing within a 40-day period B and senior managing director David Merkin .
also secured $19 million in residential refinancing for an East Coast real estate asset, and completed the capital stack on a financial package for a multifamily property in Virginia Beach, VA. In addition, the Mid-Atlan- tic Group helped complete an owner’s business plan by delivering $4.43 million in bridge debt -- at a competi- tive floating rate -- for a free- standing, 60,000 s/f ware- house in Camp Hill, PA. The loan amounted to 80 percent of the purchase price. Also during this period, the Bethesda office closed mort - gage deals for retail properties in Euclid, OH; Cambridge, MD; and Lancaster, PA Eastern Union’s Bethesda office is led by senior man- aging director Marc Tropp the site. All the properties are in excellent shape with no deferred maintenance, ex- cept for the PECO substation. They have strong tenants in place which was a benefit in the loan process. The owners are planning to renovate the vacant substation. A new loan was structured for the original construction loan with the rest going towards the renovation of the substation.” The complex consists of three buildings and a vacant electric substation. • The office building was built in 2020. It is a 4-story brick 35,500+/-s/f building. There is a mix of medical and business tenants: Berkshire Hathaway Real Estate, The Open Space Performance and Event Space, medical offices • There is a 42,000+/-s/f single tenant building which houses LA Fitness. This parcel consists of 5 acres. •A 4,000+/-s/f building houses a restaurant. •There is a 3,840+/-s/f vacant electric substation set on .62+/- acre. The owner plans to reno- vate this building.
“An important part of our business approach is always to be forthcoming with cli- ents,” said Mr. Tropp. “In the case of the construction loan in Madison, Alabama, we made sure that the client understood that this was a non-traditional transaction, and therefore it would make sense to secure financing from non-traditional sources.” “The high performance of Eastern Union’s Mid-Atlantic office reflects the firm’s exper - tise in navigating today’s vola- tile real estate market,” said Merkin. “We leveraged our strong relationships with a wide spectrum of lenders, and we met clients’ needs by com- ing up with creative financing for their investments.” MAREJ In a separate achievement, Cohen was responsible for ar- ranging a $1,136,000 loan to re- finance a MOB located at 9601 Bustleton Ave., in the North- east section of Philadelphia. Cohen was contracted by the owner, a local investment group, to assist in securing a re-finance as the existing mortgage was coming due. Through the relationships that Cohen has developed, we were able to help secure the owners a loan with a regional community bank. Cohen said, “This was an interesting and advantageous journey for the Owner. The building was originally 50% occupied but the single tenant eventually leased the entire building. This change in oc- cupancy enabled the building to appraise for a higher value and the bank felt comfortable with a higher loan amount.” The single story, class B of- fice building is 7,500+/-s/f and sits on over 1/3 acre. It has ample parking for 42 vehicles with prime signage, the loca- tion provides for strong traffic counts. MAREJ
Un i on ’ s Mid-Atlan- tic Group s e c u r e d more than $75 million in commer- cial financ- ing within a 40-day pe-
Marc Tropp
riod over May and June. Fi- nancing was delivered within the multifamily, single-family rental, retail, and industrial asset classes. Eastern Union is one of the country’s largest commercial real estate brokerage firms. The largest transaction closed by the Mid-Atlantic office during this time span was a $49.5-million construc-
60,000 s/f warehouse in Camp Hill, PA
tion loan provided to New York-based Hillcrest Acquisi- tions in support of a planned 288-unit multifamily prop- erty in Madison, AL, a sub- market of Huntsville. The complex, called The Gabriel,
will consist of ten three-story buildings and is scheduled for completion in July 2024. The financing, carrying a 36-month term, was provided by 3650 REIT. The Eastern Union team
Prestige Group’s Cohen orchestrates $22.2 Million refinance for two transactions in the Greater Philadelphia area
JENKINTOWN & PHILA- DELPHIA, PA — Richard Natow , president of Prestige Group, Inc. announced that P restige Group Capital Market/Consulting Divi- sion was responsible for ar- ranging a $20,040,000 loan to refinance a mixed-use complex located on the 300 block of Highland Ave., Jenkintown. Prestige Group’s Capital Marketing/Consulting Divi- sion, under the leadership of Bob Cohen , EVP, was contracted by the owner to assist them in securing a loan to refinance their existing construction loan. Through the relationships that Cohen has developed, we were able to help secure the owners a loan with a regional bank. The majority of the loan ($19,050,00) was for the re- financing of the construction loan. The balance ($1,350,000) is for the renovation of one of the buildings on the property. Cohen said, “This was a chal- lenging and interesting project. Ownership needed to refinance their construction loan and there are other properties on
300 block of Highland Ave., Jenkintown. PA
9601 Bustleton Ave., in the Northeast section of Philadelphia
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