Eastern Union Funding, one the fastest growing mortgage brokerages serving the national commercial real estate sector, continued to forge its national footprint and grow with its clients by arranging an acquisition loan for one of CityR Group’s biggest deals yet — a 672-unit multifamily trade in Illinois.
Originated by Eastern Union President Ira Zlotowitz and Michael Muller, senior managing director, the Fannie Mae loan features a ten year term, locking in a 4.03 percent interest rate. Provided by Arbor Commercial Mortgage, the loan covers roughly 83 percent of the purchase price.
The property, The New Colonies, traded for $51.658 million and is located at 316 West 34th Street, Steger IL, roughly 35 miles south of Chicago. The size of the deal also measured significant growth, as Zlotowitz pointed out.
“As CityR started working on larger deals we facilitated their growth accordingly, and the underwriting that went into this deal allowed us to obtain the full proceeds we needed,” Zlotowitz said. “Thanks to our relationship with Arbor and understanding of Fannie Mae, we could ultimately deliver the dollars, branch out into different markets, complement a nationwide presence and grow with our client.”
CityR Group is an international firm with offices in the United States – where it owns thousands of units – as well as Israel and London. Yariv Ben-Ari of Akerman LLP, an attorney with a longstanding history with the investment firm, represented CityR Group on this deal.
“For us, this deal is about increasing upside and growing as a multinational firm. Eastern Union has become a national brand and they could appreciate that,” said CityR Group CEO of American Acquisitions, Michael Sabo. “With The New Colonies’ proximity to Chicago and 98 percent occupancy, we look forward to installing new amenities and raising output from rents at this up and coming property, while simultaneously breaking into a new market.”
Muller echoed Sabo’s sentiment. “This is a class B property with a ton of upside potential,” he said. “It’s right up CityR’s alley with their knack for repositioning and maximizing potential, we view this as a great opportunity for CityR to once again work their magic.”
