Eastern Union Secures $15.5 Million in Acquisition Financing
Eastern Union, a commercial real estate finance firm, has arranged $15.5 million in financing toward construction of a ground-up, 1,115-unit self-storage facility in Perth Amboy, New Jersey.
The loan, which covers costs associated with both land acquisition and construction of a 130,000-square-foot building, was arranged by managing director David Merkin and underwriting director Barry Dollman.
The deal closed on March 30 with lender Orix USA Corporation. The non-recourse loan was provided at 85% leverage.
“It’s challenging to secure construction financing even under normal market conditions,” said Merkin. “Eastern Union was pleased to meet our client’s needs by identifying a lender that was ready to offer a non-recourse loan at a high leverage ratio. Moreover, the lender was willing to stand by its original offer, even as economic circumstances were rapidly changing.”
The borrower was 112 New Brunswick Properties Urban Renewal LLC, doing business as Woodbridge Self-Storage. The facility will be operated by Extra Space Storage, a Utah-based real estate investment trust. The seller’s identify was not disclosed.
