Bergman of Eastern Union arranges $34 million refinance for 580-bed skilled nursing portfolio in New York and New Jersey; Funds provided by M & T Bank

Mortgage brokerage firm Eastern Union Commercial has arranged $34 million in refinancing for a four-building, 580-bed skilled nursing portfolio in New York and New Jersey. Provided through M & T Bank, the $34 million loan was financed at 5.03% fixed for five-years. Abraham Bergman, managing partner of Eastern Union, negotiated the loan on behalf of the borrower, a privately held nursing home owner and management company. Three of the properties are fully operational, while the fourth, a 120-bed skilled nursing facility, is currently under construction. The project broke ground at the end of 2011, and is expected to be complete at the end of 2012. Bergman explained that while financing of medical facilities has become increasingly difficult given the numerous medical and healthcare cuts in today's market, he was able to successfully close this transaction by working with M & T Bank to help mitigate the risk, packaging the four buildings together. "With volatility in the Medicaid and Medicare rates being paid to facilities, forecasting projections are extremely difficult," he said. "The challenge in closing this loan was compounded in that we were working with properties in two different states and thus two different rate systems." Bergman further noted that Eastern Union faced a key hurdle in closing this transaction. One of the loans being paid off with the refinance was due December 31, 2011. But despite reluctance from the lender to do so, Eastern Union negotiated a 3 month extension, facilitated both by the strength of their relationship with M & T Bank and their ability to deliver significant business. About Eastern Union Commercial Eastern Union Commercial is one of the country's largest privately owned mortgage companies serving the national commercial real estate sector. Specializing in loans up to $50 million and with total annual transaction volume exceeding $1 billion, Eastern Union has close relationships with a wide spectrum of lenders: commercial and savings banks, life companies and many Wall Street lenders. Eastern Union is among the top three producers at 18 different lenders, and arranges financing for multifamily, mixed-use, retail, office, industrial, hotel, healthcare, construction, co-op and self-storage properties. The company has offices in New York, New Jersey and Maryland.