Philadelphia, PA

$10 Million Performing Office Loan | Suburban Philadelphia, PA

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $10 million performing office loan (the “Loan” or “Note”). The Loan is secured by the open-end mortgage on two office condominium building units, located in Suburban Philadelphia, PA. (the “Property” or “Collateral”).

The Collateral is comprised of two, freestanding office condominium buildings units within a master-planned park containing offices and hotels. Constructed from 2004-2005, the three-story Property is conveniently located along Pennsylvania Route 611 and totals approximately 120,000 rentable square feet. As of December 2024, the Property was 68.2% occupied and benefits from a WALT of 2.4 years.

Originated in June 2021 and maturing in August 2027, the Loan features a floating interest rate of SOFR + 5.61% and has an attractive in-place debt yield of 10.21%. Currently in cash management, the Loan is performing with an unpaid principal balance of approximately $10 million.

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Attributes

Building area gross

11,148 m²

Occupancy

68.2%

Year built

2004

Number of buildings

Number of floors

WAULT

2.4 years

Call for offers

17/04/2025

Media

Investment Highlights

Attractive Coupon

The Loan is structured with an attractive floating rate coupon of SOFR + 5.61%.

Buyer Optionality

While the Loan features an in-place debt yield of 10.21%, there is fluidity in the rent rollover schedule over the 29 months of term remaining. The potential variance in the Collateral’s occupancy going forward and the resulting impact to the Loan’s performance, could lead to various potential resolution strategies for investors.

Strong Demographics

Within a one-mile radius of the Property, the area exhibits robust demographics, with an average household income of $171,000 and over 47% of the population possessing a bachelor’s degree or higher.

Exceptional Access & Strategic Location

The Property is conveniently located along Pennsylvania Route 611, a major transportation artery connecting downtown Philadelphia to the surrounding suburban communities. Additionally, the Property is positioned within close proximity to key retail centers and community amenities.