Opal Holdings Taps BankUnited and KeyBank for $33M for Florida Portfolio
The New York real estate investment firm Opal Holdings received two loans—one from Florida-based BankUnited and one from Ohio-based KeyBank—to fund its purchase of three apartment complexes in Jacksonville, Fla., Commercial Observer can first report.
Eastern Union Funding arranged the financing from the two lenders, which includes a $20.9 million loan from Bank United to fund the acquisition of 5959 Fort Carolina Road and 5501 University Club Boulevard North, and a $12.3 million bridge loan from KeyBank for 7528 Arlington Expressway.
The two transactions fall under the brokerage’s new fee structure, which caps fees at $135,000 for deals starting at $13.5 million and up.
“We’ve always had a great relationship with Eastern Union,” a spokesperson for Opal said in prepared remarks provided to CO. “Historically we have seen huge value from this brokerage, and its fee structure dramatically escalates an already-huge competitive advantage. We were very happy with the fee cap on this deal, and got the same top-notch execution and deal structure.”
The loan provided by BankUnited carries a ten-year term with a floating interest rate of 2.4 percent over 30-day Libor. The financing also allows for no prepayment penalty and the option to fix the loan. The bridge loan provided by KeyBank carries a 12-month term with a floating rate of 200 basis points over Libor.
“It’s a win-win to keep fees in check,” said Eastern Union’s senior vice president Jake Gluck, who worked on the deal. “Clients get a competitive price point, and we, as a result, see greater volume – all while increasing the value we consistently deliver.”
Eastern Union Director Jonathan Singer also worked on the transaction.
A spokeswoman for KeyBank declined to comment. A representative for BankUnited did not respond to inquiries.