Atlantic Union Bankshares Facilitates $38.5 Million Refinancing for Warren Manor Apartments
- Eastern Union secured a $38.5 million refinancing for Warren Manor Apartments, enhancing its financial structure.
- The refinancing shifted from a high-interest bridge loan to a five-year fixed term, benefiting the borrower.
- Eastern Union's negotiation skills highlight its commitment to tailored financial solutions in the multifamily property sector.
Eastern Union Secures $38.5 Million Refinancing for Warren Manor Apartments
Eastern Union, a prominent player in commercial real estate mortgage brokerage, announces the successful arrangement of a $38.5 million refinancing loan for Warren Manor Apartments in Warren, Michigan. This multifamily property, located 18 miles north of Detroit, encompasses 479 units within a sprawling 30.72-acre site. The net rentable area spans 388,675 square feet, indicating a significant investment in an established residential asset. The refinancing, led by senior loan consultant Alex Jaffa and loan consultant Sinai Eizikovitz, comprises an initial funding of $35.7 million, with an additional $2.8 million contingent on increasing rental revenues.
This refinancing deal presents a strategic move for the property, transitioning from a high-interest-rate bridge loan to a more favorable financial structure. The loan features a five-year fixed term with an initial year of interest-only payments, offering the borrower a light prepayment penalty of one percent for the first two years. Jaffa emphasizes the significance of this cash-out refinancing, especially in the current lending climate where many lenders exhibit caution in approving sizable cash-outs. Despite the property not being fully occupied, Eastern Union's ability to secure a substantial cash-out is a testament to its negotiation skills and market understanding.
Warren Manor Apartments, constructed in 1969, comprises twelve two-story buildings and one single-story building, showcasing its considerable size and potential for improved occupancy rates and revenue generation. The property's historical context combined with the refinancing initiative positions it for future growth, as the borrower gains flexibility with the loan structure. As Eastern Union continues to navigate the complexities of the lending environment, this transaction underscores its commitment to providing tailored financial solutions for multifamily properties.
In addition to this significant refinancing deal, Eastern Union's success highlights the broader trends within the commercial real estate sector. The company’s ability to negotiate favorable terms amid a challenging market reflects a growing demand for innovative financing solutions.
As multifamily properties remain a focal point for investors and lenders alike, the strategic refinancing of Warren Manor Apartments may serve as a benchmark for similar transactions in the region, illustrating a path forward for property owners seeking to optimize their financial structures.
