Eastern Union Funding, a top-10 debt brokerage – known for its role as a trusted advisor and innovator in the commercial mortgage marketplace – is continuing to see an uptick in its equity platform which was launched this summer, along with the strength experienced in their debt business over the past several months.
Eastern Union Managing Director Jeff Seidenfeld attests to the fact that when clients are purchasing a property, they feel that the most critical element in securing financing for a commercial real estate (CRE) project is getting all the pieces in place so that the transaction can be completed on a timely basis, and sometimes a limited partner is needed to provide equity capital to complete the financing package.
As an example of the many deals that Easterns’ equity division is in the process of marketing for equity investment, one of Mr. Seidenfeld’s clients needed to source equity from investors in order to close on a shopping center in the Phoenix metro area, and engaged Eastern Union’s equity division to assist him.
The shopping center is 82% occupied, of which 75% of revenue comes from national anchor tenants. With strong, stable cash on cash returns in the double digits from day one, a projected 3 year IRR of 25%+ and significant upside potential, the deal was of significant interest to many investors. The equity division succeeded in making introductions that resulted in $1MM of equity investment by tapping into the Equity Division’s vast network of LP investors, and introducing the sponsor to investors who were the best fit for a deal of those parameters. As with all of Eastern’s equity dealings, the sponsor and the investors directly negotiated the actual investment independently of the firm after Eastern made the initial introductions
“This example highlights investors’ appetite for real estate equity investments in quality properties where they can invest alongside experienced and established professional real estate sponsors. Without our expertise and connections, this match may not have otherwise been made. We are proud of what we are already accomplishing in this division – particularly at this early stage of the game,” said veteran commercial real estate executive, Marc Belsky, who runs Eastern’s Equity Division.
Eastern Union President Ira Zlotowitz added, “As was stated when the Equity Division was first announced, we knew that our vast network of connections would help our clients find the investors they seek. What we are seeing demonstrates what we have believed all along. The idea of adding value to our debt clients by just charging clients to cover the cost of having our equity team market a client’s deal and get it in front of potential investors, proved to be a win-win for everyone.”
The equity platform has a growing database – created under the direction of Josh Novoseller, Head of Investor Relations - full of high net-worth investors and family offices who are eager to invest equity in commercial real estate as limited partners. Eastern Union introduces clients who are seeking investors to invest as little as $50,000 ranging well into the millions. Introducing clients to these potential investors, the firm is complementing its execution of mortgages and giving new meaning to its trusted advisor position. Interested investors can sign up here.