FLATBUSH, NY– October 20, 2015: Eastern Union Funding, a top-10 commercial real estate debt brokerage, has arranged two loans for a Jacksonville portfolio. NYC-based Real Estate Investment Firm Opal Holdings tapped Eastern Union’s Jake Gluck, who serves as a Senior Vice President on Eastern’s Senior Managing Director Jonathan Singer’s team, to broker a $20.85 million acquisition loan for one property. Upon receiving a highly competitive term sheet, Opal Holdings gave the brokers the green light to move on another deal in the pipeline: a $12.3 million bridge loan for the purchase of 288 units.
Eastern Union disrupted the mortgage industry’s fee structure over the summer by capping its fees at $135k. Long-time client, and new owner of a large Florida multifamily portfolio, Opal Holdings capitalized on the new structure when he contracted Eastern Union to negotiate an acquisition loan for the purchases of three Jacksonville apartment complexes.
The fee cap targets deals roughly $13.5 million and up, rendering Eastern Union’s arrangement of the larger loan as the delivery of a virtually unrivaled loan product.
Today both loans saw closure. The larger of the two holds a ten year floating rate of 2.4 percent over 30-day LIBOR and no prepayment penalty, with the option to fix the loan at any time. It was negotiated with Bank United. The bridge loan closed with Key Bank on a 12-month term with a floating rate of 200 basis points over LIBOR.
“We’ve always had a great relationship with Eastern Union. Historically we have seen huge value from this brokerage, and its fee structure dramatically escalates an already-huge competitive advantage. We were very happy with the fee cap on this deal, and got the same top-notch execution and deal structure,” a spokesperson for Opal said.
The apartments serviced by the Bank United loan is located at 5959 Fort Caroline Road and 5501 University Club Boulevard North. The address for the deal financed by Key Bank is 7528 Arlington Expressway. The Fort Caroline Road property is the larger of the two with 356 units.
“It’s a win-win to keep fees in check. Clients get a competitive price point, and we, as a result, see greater volume – all while increasing the value we consistently deliver,” Gluck said.
About Eastern Union Funding: Founded in 2001, Eastern Union Funding is a top 10 commercial mortgage brokerage, according to Mortgage Bankers Association’s annual survey. Eastern Union’s sophisticated and reliable debt solutions are built on a foundation of trust, and complemented by a one-of-a-kind equity division. As per Crain's New York, Eastern Union is one of the top 50 fastest growing companies in NYC. Other accolades, also based on growth, came from Inc. 5000, real estate forum, Observer Media and more. Closing an average of $3 billion in annual transaction volume nationwide, Eastern Union is headquartered in New York, with offices in New Jersey, Maryland and Israel. For more on the country’s most trusted debt brokerage visit www.easternuc.com