Warren Manor Secures $38.5 Million Refinancing Package for Detroit Area Multifamily Assets

Nusson Herschlag secures a $38.5 million refinancing package for Warren Manor in Michigan, featuring flexible terms and potential for additional future funding.

By: AXL Media

Published: Mar 13, 2026, 8:36 AM EDT

Source: https://www.multihousingnews.com/

Strategic Refinancing in a Tight Detroit Market

The refinancing of Warren Manor Apartments arrives at a time when the Detroit metropolitan area is experiencing limited large-scale cash-out opportunities for existing loans. The $38.5 million package, led by Eastern Union’s Alex Jaffa and Sinai Eizikovitz, consists of an initial $35.7 million funding tranche. A notable feature of this agreement is the "earn-out" potential, allowing the borrower to access an additional $2.8 million as rental revenues increase. This structure provides a financial cushion while incentivizing the owner to reach full occupancy and revenue stabilization in a competitive regional market.

Loan Terms and Financial Flexibility

The agreement with Bellco Credit Union is structured as a five-year fixed-term loan. To assist with immediate cash flow, the first year of the term is designated as interest-only. Furthermore, the deal was designed with a minimal one-percent prepayment penalty during the first two years, offering the owner significant flexibility to pivot or recapitalize should market conditions shift favorably. This level of maneuverability is a tactical advantage for the Midwest region, where investors are carefully navigating fluctuating interest rates and local economic shifts.

Property Overview and Recent Capital Improvements

Warren Manor is a sprawling 479-unit complex situated on over 30 acres at 21516 Dequindre Road. Originally constructed in 1969, the community consists of 12 two-story buildings offering one- and two-bedroom residences. Since Nusson Herschlag acquired the property from ROCO Real Estate in October 2023 for $43 million, the management has invested approximately $5 million into capital improvements. These upgrades were aimed at modernizing the 388,675-square-foot site and enhancing resident amenities, including the on-site pool house and laundry facilities.