BETHESDA, Md., April 9, 2024 /PRNewswire/ -- Marc Tropp, a senior managing director with Eastern Union, arranged $12,050,000 in financing toward the acquisition and conversion of Wolf Creek, a 192-unit multifamily property located at 500 North Caraway Road in Jonesboro, AR.
The site had served as student housing for attendees of Arkansas State University, situated less than a quarter mile from the property. A public, research university, Arkansas State University is the second-largest university in Arkansas.
The property is now being converted to a commercial multifamily site.
Eastern Union is one of America's largest providers of commercial mortgage brokerage and capital markets advisory services. Mr. Tropp, together with senior managing director David Merkin, oversee the firm's Mid-Atlantic Region office in Bethesda, MD.
The purchase price for the property was $12,050,000. The buyer was New York-based Hillcrest Acquisitions. The seller was not identified.
"This was a complex and challenging transaction that required the services of a talented and experienced broker like Marc Tropp," said Abe Bergman, president and co-founder of Eastern Union. "Few banks would be prepared to take on the multiple risks associated with this deal. But Mr. Tropp's excellent and far-reaching relationships with the banking community enabled him to find a suitable lender."
"This unusual and difficult deal began with a stabilized property with a healthy cash flow, followed by the removal of that cash flow and the assumption of risk associated with renovation, and, finally, the assumption of additional risk associated with a new lease-up," said Mr. Tropp. "Numerous banks declined to take on this transaction. Having built trusting relationships with many lenders over nearly two decades, however, I was gratified to have succeeded in identifying a willing banker."
Built in 2008, Wolf Creek consists of eleven three-story buildings standing on a 13-acre parcel. The site's 192 units comprise 136 three-bedroom units and 56 with two bedrooms. The average unit size is 1,050 square feet.
Mr. Tropp secured a five-year mortgage with 24 months interest-only payments during renovations and lease-up. Once leased up, the mortgage converts to a principal-and-interest payment based on an amortization period of 25 years. The transaction carries a 65-percent loan-to-cost ratio. The lender was Bay Vanguard.
The overall budget for the project was $17.79 million. Total renovation costs amount to $4.4 million. The remaining money will be applied to closing costs and soft costs.
About Eastern Union
Founded in 2001, Eastern Union is a national commercial real estate firm that provides both financing services and capital markets advisory services. It employs more than 90 real estate professionals and closes billions of dollars' worth of transactions annually. Eastern Union leverages its relationships with lenders and its marketplace knowledge to secure the best available rates and terms.
The company's Mid-Atlantic Region office, led by Marc Tropp and David Merkin, is located in Bethesda, MD.
Eastern Union secures financing for transactions of all sizes across the United States. Transactions, which can include multi-state and multi-site portfolios, encompass conventional commercial mortgages, structured debt, healthcare, hospitality, manufactured home properties, single-family rentals, investment sales, and -- handled in conjunction with company affiliate Eastern Equity Advisors -- equity placement.
For more information, visit www.easternunion.com.
Media contact:
Steve Vitoff Eastern Union516 652 0785[email protected]
SOURCE Eastern Union
Originally published at https://www.prnewswire.com/news-releases/marc-tropp-of-eastern-union-secures-12-million-in-financing-toward-acquisition-and-conversion-of-192-unit-student-housing-complex-in-jonesboro-arkansas-302111394.html Images courtesy of https://pixabay.com
