Singer of Eastern Union arranges $15.161 million for Bronx portfolio

Eastern Union Funding has executed a four-set of deals which reflect the real estate climate in the outer boroughs.Eastern Union managing director Jonathan Singer represented Delaware- based BPS 5 LLC's debt assumption for a $24 million purchase of a five contiguous building portfolio, consisting of 206 total units. The buildings are located at 922-926, 932-934, 938-940, 944 Bronx Park South, and 2137 Vyse Ave. Singer negotiated $15.161 million for the buyer, who essentially stepped into the seller's shoes by assuming a 2007 loan provided by Wells Fargo on the building—a 10-year deal expiring in 2017, carrying an interest rate of 5.65%. "The pre-payment penalties were too steep to arrive at another solution," Singer said. "With this arrangement, my client can earn a great deal of upside in the near future when he refinances." This solution - the well-timed refinancing of existing portfolios - was illustrated in another Bronx transaction this month, when Singer refinanced a property located at 2471 Grand Ave., purchased last year for $4.733 million. Fast forward to this month and Singer negotiated a $4.8 million, 75% loan-to-value refi—based on a valuation for the building that had shot up nearly $2 million. Topping off the well-timed execution, terms were settled at a competitive 3.25% interest rate without recourse. Punctuating this activity, Eastern Union Funding and Singer capitalized on two more value-add, financing opportunities. The broker arranged a $4.763 million acquisition loan on Webb Ave., featuring a 3.1% interest rate without recourse, and a $4 million loan for the refinance of a multifamily on 42nd St. in Queens, closing at 3.375% interest—also without recourse. "It seems to be harvesting season in these markets right now, and on a company-wide level we're positioning our clients to move while the industry is ripe," said Avrom Forman, CEO of Eastern Union.