EASTERN UNION COMPLETES $20.4 MILLION REFINANCING FOR SENIOR LIVING PROJECT
Eastern Union has successfully arranged a significant refinancing package amounting to $20.4 million dedicated to converting a six-story hotel with 137 units into an assisted living residence. This transformative project marks an important step towards expanding senior living facilities that cater to the increasing demands of aging populations.
DETAILS OF THE PROJECT
The hotel, previously operating as a Deluxe Inn and formerly known as a Comfort Inn, is located on a 2.27-acre site, featuring a gross building area of 98,951 square feet. The planned development will be known as Parkdale Senior Living, and the modification is expected to be completed by the middle of 2026.
Meir Abrahamson, a senior loan consultant at Eastern Union, orchestrated the complexity of this deal, taking into account the needs of both the property owner and the lender. He stated, "Coming up with a final deal structure required a considerable amount of creativity on our part." To achieve the desired financing terms, Eastern Union engaged in dialogues with multiple lenders, ensuring the best fit for this intricate project scenario.
FINANCING STRUCTURE
This financing package comprises two distinct loans facilitated through the SBA 504 program. The primary permanent loan is valued at $15,779,000, designed to facilitate long-term funding with an extended term of 26 years and three months, amortized over a period of 25 years. Notably, this includes a grace period of 15 months with interest-only payments.
The second component of the financing, a bridge loan, amounts to $4,669,000 with identical interest rates as the primary loan. It provides flexibility through interest-only payment terms over a 21-month period.
THE VISION BEHIND THE PROJECT
Mr. Abrahamson highlighted the significant demand for senior living options in the area, pointing out that “the principals decided to reposition the property because they wished to pursue opportunities in the senior living sector, which is currently grossly underserved." This strategic move taps into a growing market that aims to enhance living conditions for seniors.
Furthermore, Mr. Abrahamson’s ability to negotiate with the bridge lender to secure an extended repayment timeline facilitates a smooth transition to the new operational model.
ABOUT EASTERN UNION
Founded in 2001, Eastern Union stands out as a national player in the commercial real estate sector, specializing in financing services and capital markets advisory. Managing a robust team of over 90 professionals, the firm consistently closing transactions amounting to billions annually. Eastern Union prides itself on leveraging established relationships and market expertise to furnish clients with the most favorable financing options.
The firm is equipped to handle transactions of various sizes across the United States, covering conventional commercial mortgages, structured debt, and specialized financing for sectors such as healthcare and hospitality. This positions Eastern Union as a key player ready to cater to the diverse needs of its clientele.
Frequently Asked Questions
What is the total amount secured for refinancing?
The total refinancing amount secured by Eastern Union is $20.4 million.
What is the main purpose of the refinancing?
The refinancing is aimed at converting a 137-unit hotel into an assisted living residence called Parkdale Senior Living.
Who managed the transaction?
The transaction was managed by Meir Abrahamson, a senior loan consultant with Eastern Union.
What are the key features of the financing structure?
The financing consists of a primary permanent loan and a bridge loan, providing both long-term and short-term funding solutions.
When is the completion date expected?
The conversion of the property is expected to be completed by the middle of 2026.
