Dealmaker: Eastern Union Arranges $38.5M to Refinance Michigan Multifamily

(Image courtesy of Eastern Union)

Eastern Union, New York, arranged a $38.5 million loan to refinance a multifamily property in Warren, Mich., near Detroit.

Eastern Union’s Alex Jaffa, a Senior Loan Consultant, led the team.

The full loan amount included initial funding of $35.7 million, with the ability to earn an additional $2.8 million as rental revenues rise. The refinancing carried a five-year fixed term with one year of interest-only payments throughout that period. The transaction carried a 1% prepayment penalty over the first two years only.

The financing was provided by Bellco Credit Union.

“This transaction was coming out of a high-interest-rate bridge loan,” said Jaffa. “The property was not at full occupancy. Eastern Union successfully negotiated a large cash-out for the borrower in a market where lenders are shying away from large cash-outs. We provided the borrower with flexibility through a light prepay, while allowing for additional proceeds once the property stabilizes.”

The property, Warren Manor Apartments, has 479 units. Since 2023, ownership has completed approximately $5 million in capital improvements