Nurturing Relationships Key To Success In CRE For Eastern Union
By KIMBERLEY HAAS
A national commercial real estate firm that provides both financing services and capital markets advisory services is finding success by nurturing business relationships with a full spectrum of lenders.
Last year, Eastern Union in New York placed and closed loans with 121 lenders. Its portfolio of loans included financing from 31 new lenders.
The brokerage closed transactions in support of properties in 33 states and the company’s full palette of closed transactions represented 20 different property types.
For example, $72 million in construction financing was secured for the development of a 117-unit luxury condo complex in Queens, NY. A $51.5 million refinancing package for a self-storage complex in Virginia Beach, VA, was closed.
In Columbus, OH, the company secured a $46.2 million refinancing package for a multifamily property. And in Plano, TX, $20.4 million in refinancing was secured for the conversion of a six-story, 137-unit hotel which is being transformed into an assisted living community.
Abraham Bergman is the president and co-founder of Eastern Union. During a recent interview with The Mortgage Note, he said his childhood dream was to be a real estate developer.
“I didn’t have the money to become a real estate developer, so I became a mortgage broker,” Bergman said.
Bergman said the Eastern Union brokerage team focuses on investments in multifamily, industrial, retail, hospitality, health care, self-storage, and office buildings.
“When our clients come to us with a deal, we’re able to get a loan structured for them that really works for their particular needs and that particular property,” Bergman said. “We take a lot of pride in being able to do that.”
In addition to nurturing relationships with lenders, Eastern Union’s brokers spend their time advising clients, guiding them in a way that provides enough value that they want to be repeat customers.
“I think that’s really where our brokers stand out because it’s something that we take very, very seriously. And it’s not just lip service. We really practice that,” Bergman said.
He explained that at commercial real estate brokerages, clients often own multiple assets and they need financing on a regular basis. The loans themselves also require numerous interactions between the client and lender post-closing. Brokers who can bridge the gap between the two parties are invaluable.
Bergman said that right now self-storage is an asset class that is growing.
“We’re seeing this throughout the country that self-storage facilities are being developed. I’m sure you and all your readers have seen it. You’re driving around and there’s a self-storage, then there’s another one across the street. So, it’s an asset class that’s growing tremendously. We do a lot of financing for self-storage facilities, and it’s a very interesting asset,” Bergman said.
The other asset class that is growing is manufactured housing. With newer construction methods, manufactured homes are more attractive residential living options.
“In the last 10 to 15 years it has matured into a real viable asset class that is totally not recognizable compared to what it was 20, 25, or 30 years ago,” Bergman said.
When it comes to asset classes that are struggling, office space leads the pack, but some lenders are warming up to it.
Bergman explained that while some lenders are saying, “We’re not touching office space. Don’t even talk to us about it,” others are willing to approach it on a deal-by-deal basis.
“The toughest asset out there to finance today is an office building but we are starting to see some cracks in that where people are saying, ‘We’ll entertain it. We’ll look at it,’ and it’s probably going to take some time until inventory normalizes and it all settles itself out,” Bergman said.
Hospitality is another asset class that has slowed down, Bergman said, but there is optimism for 2025 and 2026. Hotels that are making money can find financing.
Eastern Union was founded in May of 2001. The commercial real estate brokerage employs more than 90 real estate professionals.
There are offices in Brooklyn, NY, Woodmere, NY, Chestnut Ridge, NY, Howell, NJ, Bethesda, MD, and Denver, CO.
According to the company’s website, they have closed close to $42 billion and secured 10,642 loans.