July 23, 2019
Eastern Union arranged financing for the $16.9-million sale of the 600,000-square-foot Magna International portfolio, a group of four automobile parts manufacturing facilities in multiple locations in Iowa. The firm’s Abe Kolman delivered loans facilitating the sale of the properties by Toronto-based Granite REIT America to Beau Pere Real Estate LLC of Elmsford, NY.
There were considerable time pressures in getting the deal done. The buyer faced the imminent expiration of capital gains tax benefits associated with a Section 1031 exchange, and the properties faced various environmental issues and were subject to short-term leases.
Kolman secured 4.5% interest with a four-year term on two parcels with only four years left on their leases. He also arranged for 4.75% with a seven-year term on the two other sites, which had seven years remaining on their leases.
The transaction closed with a loan-to-value ratio of 75% and financing from Bank of the West.
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