Strategic Properties of North America (SPNA) is in high gear. Currently owning and operating over $175 million in assets, SPNA has a nationwide foot print which now includes this best in class 15-story apartment building – housing 110 multifamily units – located on Main Street in Rockford, IL.
The sale punctuates the firm’s investment strategy of purchasing high quality Real Estate in secondary markets in order to drive stable double digit yield to its investors.
“SPNA prides itself on finding the go-to properties in secondary markets,” said SPNA Principal Saul Kuperwasser. “This property, with its current cash-flow and seismic potential, highlights our strategy.”
SPNA chose Eastern Union Funding to facilitate sourcing the debt on the purchase. Eastern Union Funding – the fastest growing commercial real estate mortgage brokerage serving the national sector – closed its second Illinois loan in as many months through this transaction.
Eastern Union’s President Ira Zlotowitz and Senior Managing Director Meir Kessner originated and closed the $6.742 million 12-year non-recourse loan. Locked in at 4.35 percent with one year interest only, the financing covers roughly 80 percent of the borrower’s costs. The loan was provided by a national direct lender and will be securitized through Fannie Mae.
From a financing standpoint, Eastern Union’s Zlotowitz said his company’s production of agency loans is on an upward slope, particularly in markets where the non-recourse high-leverage deals are far more competitive than products offered by regional lending sources.
This deal is case in point.
“SPNA is an aggressive force in the industry because the company identifies upside and pounces on it. By working with an agency, we could leverage this deal and add further value based on our client’s relentless ability to execute and pull off a deal,” Zlotowitz said.
