10A — August 17 - 30, 2012 — Mid Atlantic Real Estate Journal
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M ULTIFAMILY F INANCING By Marc Tropp, Eastern Union Commercial Multifamily sector stays strong
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high of 3.5 percent. We have successfully closed transactions with local banks and agencies on multi-family housing projects. Our brokers understand every deal, no matter how complicated and unique, in order to present them in the best light to the banks. As we often say, the devil is in the details. No two transactions are exactly alike. Understanding the nuanced points in a very real way often determines the level of success on each transaction. Having a broker that fully understands a deal down to its smallest
astern Union Commer- cial has a long history of multi-family financ-
points allows them to work on out-of-the-box financing requests and provide individu- alized solutions to each client. We take this approach on ev- ery transaction, regardless of the size of the loan request. Themulti-familymarket has really improved over the past 12 months. We are seeing very aggressive pricing, especially on shorter term notes. Both CMBS and Life Insurance groups have assertively come back into the market for high quality assets. Meanwhile, the overall lending community has been very aggressive putting
money out into the market. We don’t foresee this changing in the near future. Eastern Union Commercial does provide financing options for apartments, condomini- ums, and cooperatives. Over the past six months alone we have successfully closed 125 multi-family transactions -- excluding mixed use and commercial -- across the coun- try. We are placing financing throughout the entire spec- trum of multi-family assets, including stabilized proper- ties, ground-up construction, and student housing, among
many others. Developers are taking advantage of the cheap money to develop, acquire, or refinance all types of residen- tial living. The low rates will help offset future inflation and potential minor reductions in rental income in markets that today are being over-de- veloped. The multi-family sector is the top lending preference for all lenders, whether commu- nity banks or life insurance companies. Baring a dramatic shift in world events, Eastern Union Commercial does not foresee any change in the multi-family sector for at least the next 12 months. The rental housing market will likely continue as the strongest real estate sector as long as unemployment rates remain high and single-family house sales remain at an all-time low. Banks will stay their cur- rent path and keep lending on multi- family properties at very low rates. Marc Tropp is managing director at Washington, DC/Metro Region’s Eastern Union Commercial. ■ Tremont structures $9.5m financing for Bay Bridge Estates ANNAPOLIS, MD — The Annapolis office of Tremont Realty Capital arranged the debt for the refinance of Bay Bridge Estates, a manufac- tured housing community located in Brunswick, ME. The 493-site mobile home park features water views, as well as RV and boat storage. John Chase, senior director, arranged the $9.5 million loan which was funded by a private investment firm. The 10 year, non-recourse loan provided for roughly 70% loan to value with a 5.18% interest rate. The property was 83.5% occupied at the time of closing. Accord- ing to Chase, “The sponsor was able to lock in a low interest rate for 10 years with a 30- year amortization, as well as recapture approximately $2.8 million of equity.” ■
ing, with the knowledge, r e l a t i o n - ships , and expertise to provide the high level of service for s t a b i l i z e d and non-sta-
Marc Tropp
bilized multi-family financing across the United States. On average, loan rates for multi- family properties are ranging from a low of 3.0 percent to a
28 Units Multifamily $2,475,000 Baltimore, MD
64 Units Multifamily $2,600,000 Dundalk, MD
22 Units Multifamily $1,800,000 Rockville, MD
11 Units Multifamily $1,700,000 Baltimore, MD
Nationwide Relationships with Local Representation
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