Union National Bank refi’s $15 million in loan renewals.
A locally owned bank has refinanced a portfolio of industrial buildings owned by Rosemont based real estate syndicator, Brit Properties. The properties, located in the Chicago city limits and in the suburbs range in size from 15,000 square feet to 108,000 square feet. Peter Imredy, Controller at Brit Properties says, “many of the loans were set to mature and Union arranged to refinance those and a few others at the same time.”
“Industrial properties are strong as an asset class and we value our 20 year relationship with the Brit Properties team,” says Jay Deihs, Senior Vice President at the bank.
“Also,” adds Imredy, “it doesn’t hurt that our average loan to value ratio for the refinanced properties averages under 30%.”
“High interest rates from loans originated many years ago were reduced in a single refinancing package based on a number of factors.” says Deihs.
“We like the property mix in terms of property size, location and a varied list of tenants,” Deihs said. Eight of the properties are located in DuPage County where the real estate taxes are more reasonable than the taxes for four of the properties refinanced in Cook County. Tenants include the U.S. Postal Service, AT&T Services and locally owned Element Bars, a producer of nutrition products, Redbox Workshop, a producer of exhibits for children’s museums and several not-for profits including Feed My Starving Children and Housing Opportunities and Maintenance for the Elderly (HOME).
“Union National Bank has a reputation as the best local bank in the Chicago area among industrial real estate professionals such as Joe Bronson of NAI Hiffman. “One of my deals needed immediate financing and Union responded fast and with good terms,” he says. “They understand the local market extremely well.”
Imredy from Brit Properties agrees, “Jay and his team have been fair and reasonable and reward cautious borrowers. Union requested partial personal guarantees on every loan from our partners but they offered favorable terms in return.”
Imredy has been an accountant for Brit Properties for 18 years. He states, “if you consider our relationship with Union like a balance sheet—there are always going to be assets and liabilities—on balance, on the asset side Union is a great bank, but the liability is that they, like all FDIC banks are regulated by the Federal Government and are subject to lender requirements.” Imredy says, “Union can meet our needs while working within the guidlines required. They are able to offer the balance we need to successfully manage our portfolio.”
Visit Union National Bank’s website at: unbelgin.com