Eastern Union launches ‘pooled loans’ division

BROOKLYN, NY, December 9, 2019 / PRNewswire / – Eastern Union, one of the nation’s leading commercial real estate finance companies, has launched a pooled loan division that will offer below-market interest rates for borrowers. Borrowers will be rewarded with reduced rates by pooling multiple loans and approaching lenders as a group when seeking financing.

Lenders will offer lower rates to these grouped borrowers because of the savings and efficiency these lenders will reap by processing multiple loans for a group of similar properties at the same time.

Apart from a reduction in the interest rates that a bank will offer on a large number of loans, savings also stem mainly from having a bank or other lenders using the same unique team of third-party professionals – lawyers, appraisers and others. – – manage a single pool of ten to thirty loans, instead of having to repeatedly deploy team members to thoroughly manage each loan on an individual basis.

“Until now, lenders have closed their transactions with borrowers on a one-at-a-time basis,” said the founder and chairman of Eastern Union. Ira Zlotowitz. “Eastern Union’s new pooled lending division is revolutionizing this conventional model by injecting substantial new savings into the process. As a result, lenders and borrowers both benefit.

Using artificial intelligence combined with the resources of QTS, the internal banking department of Eastern Union, Zlotowitz said the Pooled Loans division would identify similar types of properties that can be ‘bundled’ into an appropriate pool of transactions. . By way of illustration, a category of pooled assets can consist only of garden-level buildings with between 10 and 50 housing units, all located in the same geographical area, and all with existing mortgages maturing in same time.

Eastern Union’s Pooled Loan Division aims to consolidate up to four separate loan groups with a total value of approximately $ 250 million each. In exchange for the new efficiencies generated by group buying, Zlotowitz estimates that lenders will lower their interest rates by an eighth to a quarter of a percentage point.

Mr Zlotowitz said the pooled lending initiative targets two categories of lenders: the first category is banks, which typically finance properties like this but hardly ever lend to such a large group of them at that time. Since the pooled loan division would simultaneously bring many loans of great collective value, it can be expected, however, that banks will offer lower interest rates to all pooled borrowers.

The second category of lenders targeted will be pension funds and other credit institutions which typically make “big check” investments of this magnitude. However, they rarely invest in this type of asset, given the relatively low value of each individual loan. Eastern Union bundled borrowers would benefit from the favorable pricing offered by this category of lenders.

“Lenders will have the opportunity to streamline their traditional approach by entering into ten or fifteen deals – worth a total of a quarter of a billion dollars – all under one loan,” Zlotowitz said. “In return for this new efficiency, lenders will offer borrowers grouped together lower rates.

Eastern Union plans to place the first round of pooled loans by the second half of 2020. For more information, visit our website at https://easternunion.com/pooledloans/

About the Eastern Union

Founded in 2001, Eastern Union is a leading national commercial mortgage brokerage firm that has completed $ 12 billion in real estate transactions over the past three years. The firm employs over 70 highly qualified real estate brokers and professionals. Eastern Union stock transactions are managed through its affiliated stock brokerage firm, Eastern Equity Advisors.

Constantly putting the needs of their clients first, the members of the Eastern Union team leverage their in-depth knowledge of the commercial real estate market to provide clients with the best rates available. Eastern Union’s experience enables the company to organize financings for complex, multi-state and multi-site portfolios, as well as loans for smaller, single-owner transactions.

Eastern Union, which operates nationwide, is headquartered in New York City and has numerous branches along the East Coast. For more information visit https://easternunion.com

Media contact:

Steve vitoff
Eastern Union
516 652 0785
[email protected]

SOURCE Eastern Union

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