New York & Tri-State + New Jersey + Retail | May 11, 2020

Eastern Union Lines Up Debt on NJ Self-Storage

Eastern Union recently arranged $15.5 million in financing toward construction of a ground-up, 1,115-unit self-storage facility in Woodbridge Township, NJ. The loan was arranged by managing director David Merkin and underwriting director Barry Dollman.

The non-recourse loan was provided at 85% leverage. Despite the marketplace disruption triggered by the COVID-19 virus, the deal closed on March 30 with the lender, Orix USA Corporation, adhering to its original terms.

“It’s challenging to secure construction financing even under normal market conditions,” said Merkin. “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 borrower was 112 New Brunswick Properties Urban Renewal LLC, doing business as Woodbridge Self-Storage. The facility will be operated by Extra Space Storage.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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