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GLASSBORO, NJ-Arbor Commercial Mortgage, based in Uniondale, NY, has closed a $2 million loan under its mezzanine product line on the Crossings Apartments, a 328-unit multifamily complex here. The funding was originated by Fred Weber, the firm’s executive vice president and managing director of structured finance.

The loan will carry an initial term of 36 months with two 12-month extension options, according to Weber. It is interest-only and carries a note rate of 700 basis points over the 30-day LIBOR rate with a floor of 10%. The borrower, who was not identified, will pay an exit fee equal to an amount necessary to provide Arbor with an unlevered 13% IRR, not including any extension fees.

The principals involved in the transaction acquired the property recently with plans to renovate it through a combination of capital improvements, changes in management and a new marketing campaign, according to Weber.

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