Eastern Mortgage Busy Financing Greater Boston Apartment Complexes

BOSTON–Eastern Mortgage Capital recently provided $3,500,000 in permanent financing on Victory Road Apartment in Lynn, MA. The complex is a 41-unit multifamily structure with ground floor restaurant space. The complex constructed in 1975 remains fully occupied in the hands of its original owner. The individual units have been renovated within the last five years.

Eastern Mortgage arranged the finance plan with the building’s loan history in mind. “This is the fourth 223(f) loan that’s been placed on this property in the last 20+ years. We were delighted to be able to return significant equity to this family developed asset, coupled with a 35-year fixed rate, locking in today’s very low rate for the future,” noted Peter Panagako, Senior Vice President of Eastern Mortgage Capital. “The FHA-insured financing provides a loan that amortizes fully over its 35- year term – so there’s no interest rate risk, and no ‘balloon risk,’ ever. As with all of our loans, this is non-recourse and assumable, and has a prepayment structure that avoids Yield Maintenance or Defeasance,” claimed Panagako.

In addition to financing the Lynn apartment complex, Eastern Mortgage also recently provided $16,230,000 in permanent financing to Pearl Street Apartments in Somerville. The 81-unit complex is age restricted and multifamily.

The Eastern Mortgage team knew the terms of the financing plan would benefit the owners. “The HUD Insured financings provided significant equity recapture for the owners, as well as a material savings in interest rate,” commented Peter Panagako, Senior Vice President of Eastern Mortgage Capital. “The FHA-insured financing provides a loan that amortizes fully over its 35- year term – so there’s no interest rate risk, and no ‘balloon risk,’ ever. As with all of our loans, this is non-recourse and assumable, and has a prepayment structure that avoids Yield Maintenance or Defeasance,” added Panagako.

Peter Panagako

Pearl Street, Somerville MA