BETHESDA, Md., Sept. 3, 2021 /PRNewswire/ — Eastern Union, one of the country’s largest commercial real estate finance firms, has secured $9.75 million in financing toward the acquisition of a three-property, 218,961-square-foot, flex industrial/office portfolio along Philadelphia’s Delaware River waterfront, one of the most highly developed industrial and logistical centers on the East Coast.
The portfolio — acquired off-market at a price below replacement cost — includes 20 Jackson Street, 38 Jackson Street and 21 Wolf Street.
Marc Tropp, a senior managing director with the company, arranged the mortgage on behalf of a partnership consisting of Michael Bauer through his investment arm, New York City-based BASH Capital, and West Chester, PA-based Joseph A. Cunane. The partnership owns and has successfully leased a neighboring property at 22 Wolf Street.
Mr. Tropp leads Eastern Union’s Mid-Atlantic office in Bethesda, MD.
The overall $9.75-million loan applies $5,194,300 toward acquisition, in conjunction with a credit facility of $4,555,700 for renovations and leasing costs. In addition to the mortgage, the partnership raised $4,400,000 in equity. The two combined acquisition sources total $14,150,000.
"Eastern Union attained attractive bank financing for this acquisition for two primary reasons," said Mr. Tropp. "First, the sponsor brought a strong local market presence and a solid business plan to the table. And second, our company has developed excellent relationships with scores of the country’s top lenders, and we leveraged these relationships to secure the most favorable terms possible."
The portfolio is situated within an area considered to be Philadelphia’s most actively developed big-box retail/industrial corridor — and a prime location for redevelopment. It is located in immediate proximity to I-95, major ports, arenas and downtown Philadelphia. The three properties are at the center of a major logistics hub that includes a new Amazon logistics headquarters, a UPS distribution center, and a 700,000-square-foot retail power center anchored by IKEA, Lowe’s and Best Buy.
Further reflecting development trends within the area, a seven-acre manufacturing facility owned by the chemical company Inolex — situated directly opposite the three properties — is in the process of being sold to a large developer. The partnership expects that the sale and redevelopment of the site will generate added demand and attract new users to the district.
"We’ve been seeing consistently high demand for flex industrial/commercial space in a supply-constrained market," said Michael Bauer, principal of BASH Capital. "Reflecting these dynamics, these three properties have been experiencing strong pre-leasing interest and activity.
"Two key reasons why we’re attracted to this location," Mr. Bauer said, "are its superior multi-modal access, and its convenience of access and distribution throughout the city and the region."
The partnership plans to renovate the properties and increase cash flow by keeping existing tenants in place, while leveraging local relationships to relocate and attract new tenants.
The leasing campaign will be led by Steve Jeffries and Connor Tunno of TSC Precision Realty Group, with offices in Philadelphia and Berwyn, PA.
About Eastern Union
Founded in 2001, Eastern Union is a leading, national commercial mortgage brokerage firm. It employs more than 125 real estate professionals and closes an average of $5 billion in transactions annually. Eastern Union leverages its relationships with lenders and its marketplace knowledge to secure the best available rates and terms.
Eastern Union, headquartered in New York, closes transactions of all sizes across the United States. It secures financing for all asset types. Transactions — which can include multi-state and multi-site portfolios — encompass both conventional and structured financing. In 2020, Eastern Union’s Multi-Family Group reset market pricing by offering a quarter-point fee — with a minimum fee of $15,000 and no back-end fees — for refinancing properties backed by Fannie Mae or Freddie Mac. Capital introductions are handled through Eastern Union’s affiliate, Eastern Equity Advisors.
For more information, visit www.easternunion.com
516 652 0785
SOURCE Eastern Union