Eastern Union, a commercial real estate finance firm based in Howell, announced on Wednesday it has arranged $15.5 million in financing for a construction project in Perth Amboy.
The loan, which will cover the costs associated with constructing a 130,000-square-foot self-storage facility, was arranged by David Merkin, managing director, and Barry Dollman, underwriting director.
Despite COVID-19 disrupting the market, the deal closed on March 30 with the lender, Orix USA Corporation. The borrower was 112 New Brunswick Properties Urban Renewal LLC dba Woodbridge Self-Storage.
“It’s challenging to secure construction financing even under normal market conditions,” Merkin said. “Eastern Union was pleased to meet our client’s needs by identifying a lender that was ready to offer a non-recourse loan at a high leverage ratio. Moreover, the lender was willing to stand by its original offer, even as economic circumstances were rapidly changing.”
The 1,115-unit facility will be operated by Extra Space Storage, a Utah-based real estate investment trust. The seller was undisclosed.