Eastern Union secures $24 million toward refinancing of newly constructed, 57-unit, mixed-use property in Flatbush

Brooklyn, NY Eastern Union arranged the $24 million refinancing of a construction loan in support of a 57-unit, mixed-use building in Flatbush.

The seven-story property, which completed construction earlier this year, is located at 2508 Foster Ave. The site encompasses 55 residential units and two retail units. Tenants receive support from the City of New York’s CityFHEPS program, a rental assistance supplement that helps individuals and families find and keep housing.

The mortgage was secured by Eastern Union senior managing director Motti Blau and senior loan consultant Mendy Pfeifer. Dov Bakon served as underwriter for the transaction.

The non-recourse loan, which carried a yield maintenance clause, covered a five-year period on an interest-only basis for its full term, with principal due at the end of the term. It carried a 65% loan-to-value ratio. The interest rate was not disclosed.

Two years ago, the Eastern Union team had delivered a $17.5 million construction loan in support of the Flatbush project. The refinancing enabled the borrower to cash out with $6.5 million in proceeds.

“Eastern Union is committed to the success of our clients, and this transaction serves as an excellent example of our approach,” said Blau. “We supported the borrower throughout this two-stage process, and they knew they could count upon us as their trusted advisor.”

Units average 692 s/f in size. The building’s overall, net rentable area is 44,362 s/f.

The borrower was 1341-1351 Flatbush LLC, and the lender was the Bank of Montreal.