Marc Tropp, a senior managing director with Eastern Union, has secured $13,297,000 in financing toward the ground-up construction of a four-story, 931-unit, self-storage facility at 80 Barber Avenue in Worcester, MA.
Eastern Union, based in New York, is one of America’s largest providers of commercial mortgage brokerage and capital markets advisory services. Together with senior managing director David Merkin, Mr. Tropp oversees the firm’s Mid-Atlantic Region office in Bethesda, MD.
The climate-controlled property will have a gross size of 126,260 square feet and 93,186 square feet of rentable space. The average unit size will be 100 square feet.
“This construction project had suffered from unacceptable delays until Eastern Union arrived on the scene,” said Mr. Tropp. “By working quickly and efficiently, we pleased the borrower by promptly identifying a willing lender for this transaction.”
The financing carries a 65-percent loan-to-cost value. The interest rate over an initial, 36-month construction and lease-up period will equal 300 bps over SOFR. The borrower will make interest-only payments during this period.
The original lender, a local bank, had subjected the project to lengthy delays. The lender waited nine months before finally advising the borrower that it would be unable to deliver on financing. Once Mr. Tropp and the Eastern Union team became involved with the transaction, a deal was closed with a local community bank within 60 days.
The construction term will be followed by a permanent loan over an initial five-year term at an interest rate of 300 bps over the FHLB rate. The rate will then reset to 300 bps above the then-FHLB rate in year six for a second, five-year term. The permanent loan will be tied to a 30-year amortization period.
The facility will be operated by CubeSmart, a real estate company focused on the ownership, operation, acquisition, and development of self-storage facilities in the United States.
Value-added amenities at the site will include exterior lighting, security gates, uncovered parking, onsite managers and video surveillance.
Once a nationally prominent manufacturing region, the greater Worcester area has transformed itself into a more diverse economy, with industries such as biotechnology, advanced manufacturing, information technology, healthcare and medical research.
About Eastern Union
Founded in 2001, Eastern Union is a national commercial real estate firm that provides both financing services and capital markets advisory services. It employs more than 90 real estate professionals and closes billions of dollars’ worth of transactions annually. Eastern Union leverages its relationships with lenders and its marketplace knowledge to secure the best available rates and terms.
The company’s Mid-Atlantic Region office, led by Marc Tropp and David Merkin, is located in Bethesda, MD.
Eastern Union secures financing for transactions of all sizes across the United States. Transactions, which can include multi-state and multi-site portfolios, encompass conventional commercial mortgages, structured debt, healthcare, hospitality, manufactured home properties, single-family rentals, investment sales, and handled in conjunction with company affiliate Eastern Equity Advisors equity placement.
For more information, visit www.easternunion.com.
Media Contact:
Steve Vitoff
Eastern Union
516 652 0785
380692@email4pr.com
