May 11, 2020
Eastern Union recently arranged $15.5 million in financing toward construction of a ground-up, 1,115-unit self-storage facility in Woodbridge Township, NJ. The loan was arranged by managing director David Merkin and underwriting director Barry Dollman.
The non-recourse loan was provided at 85% leverage. Despite the marketplace disruption triggered by the COVID-19 virus, the deal closed on March 30 with the lender, Orix USA Corporation, adhering to its original terms.
“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.
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