Printer Friendly

Lender follows investor off beaten track in search of profit.

Eastern Union Funding arranged acquisition financing for two apartment communities in Lancaster, Pa., on behalf of Lakewood, N.J.-based AJH Management.

This is a westward expansion for the investor, which now owns 1,500 units on the Jersey Shore and throughout eastern Pennsylvania. The transaction was also its largest to date.

Eastern Union Funding senior vice president of banking relationships David Singer arranged a Fannie Mae 7-6 ARM loan through Arbor Commercial Mortgage to finance the purchase of the Class A properties, which were being sold by Summit, N.J.-based The Solomon Organization.

Quail Run Apartments is a 136-unit complex and includes pet-friendly apartments, a children's play area, laundry, on-site maintenance, a state-of-the-art fitness center and nearby public parks. Stone Mill

Station is a 125-unit community which also includes pet-friendly apartments and on-site maintenance, and is convenient to Routes 30 and 222, downtown Lancaster and public transportation.

"This transaction represents investors' voracious appetite to go beyond primary and secondary markets in search of multifamily apartment deals, one of the most sought-after asset classes in real estate," Singer said.

"Lenders are also hungry for this type of product, as shown by AJH's ability to close on high-leverage, 80 percent loan-to-purchase financing."

Singer worked with Arbor Commercial vice president Stephen York to underwrite the loan, which includes a one-year lockout and 1 percent pre-pay thereafter, and was priced 2.67 percent over LIBOR. AJH Management plans to convert the loan to a fixed rate after 1 year.

COPYRIGHT 2015 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Comment:Lender follows investor off beaten track in search of profit.
Publication:Real Estate Weekly
Date:Dec 9, 2015
Words:247
Previous Article:Basis Investment moves fast to fund $59M BHN acquisition loan.
Next Article:Jehovah's Witnesses selling Brooklyn headquarters.
Topics:

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |