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Eastern Union Arranges Construction Loan on CubeSmart-Branded Storage in Worcester
Marc Tropp, a senior managing director with Eastern Union, has secured $13,297,000 in financing toward the ground-up construction of a four-story, 931-unit, self-storage facility at 80 Barber Ave. in Worcester, MA. The facility will be operated by CubeSmart.
The financing carries a 65% loan-to-cost value. The interest rate over an initial, 36-month construction and lease-up period will equal 300 bps over SOFR. The borrower will make interest-only payments during this period.
The original lender, a local bank, had subjected the project to lengthy delays, waiting nine months before finally advising the borrower that it would be unable to deliver on financing. When Eastern Union stepped in, a deal was closed with a local community bank within 60 days.
The construction term will be followed by a permanent loan over an initial five-year term at an interest rate of 300 basis points over the FHLB rate. The rate will then reset to 300 bps above the then-FHLB rate in year six for a second, five-year term. The permanent loan will be tied to a 30-year amortization period.
