Eastern Union secures $15.9 million in financing for multi-family conversion project in East Peoria

East Peoria, IL Eastern Union arranged a $15.918 million acquisition and construction loan for the conversion of a former assisted living facility into a 246-unit multifamily property located at 500 Centennial Dr.

The financing was arranged by senior loan originator Joe Siegfried of Eastern Union. The borrower was The H&A Group of South Bend, IN, a real estate investment and development company. The loan was provided by Genesis Capital, which is based in Sherman Oaks, CA.

Originally constructed in 1984, the property totals 212,374 s/f in size on a 23.4-acre parcel. The site has 206 parking spaces.

It will undergo substantial redevelopment from an assisted living facility – which is currently vacant -- into modern multifamily housing. The project is located in the Centennial Dr. corridor of East Peoria, a growing market with increasing demand for residential rental inventory.

The transaction included both acquisition and construction financing and represented 85% loan-to-cost. The three-year financing carried an interest-only structure for the full term. The loan also carried no prepayment penalty and an interest rate of SOFR plus 500 basis points.

“The key to this transaction was securing high-leverage financing in a secondary market while still achieving favorable loan terms,” said Siegfried. “We were able to structure 85% of the total project costs along with an aggressive rate and a full 36-month interest-only term, creating meaningful flexibility for the sponsor as they execute the conversion strategy.

“The full gut renovation will reposition the asset into market-rate multifamily housing designed to meet growing regional demand,” he said.

Planned improvements include a swimming pool, new kitchen appliances, upgrades to cabinets, closets and countertops, HVAC improvements, and other renovations.