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$22.5 Million Sub-Performing Office Loan Relationship | Philadelphia, PA

$22.5 Million Sub-Performing Office Loan Relationship | Philadelphia, PA_Property for Sale

Attributes

Loan #1 Original Balance
$21.9 Million
Loan #2 Original Balance
$23.4 Million
Loan #1 Current UPB (As of October 2026)
$15.4 Million
Loan #2 Current UPB (As of October 2026)
$7.0 Million
Current Maturity Date (Both Loans)
February 2027
Interest Rate (Both Loans)
SOFR + 5.25%
Interest Rate Floor (Both Loans)
3.25%
Call for offers
12/15/2026

Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $22.5 million sub-performing office loan relationship (the “Loan Relationship” or “Loans”) consisting of two sub-performing loans. The Loans are not cross defaulted or cross collateralized and are each secured first-lien mortgages on two office buildings in Philadelphia, PA (the “Properties”, “Property” or “Collateral”). Originated to finance the acquisition of each property in 2017 and 2018, the Loans had an aggregate original balance of $45.3 million. Both Loans have floating interest rates of SOFR + 5.25% and carry a 3.25% rate floor. The Lender has exercised numerous short-term extensions, which extended the Loans maturity date to February 2027.


The Collateral comprises two office buildings constructed in 1916 and 1939. Located in Philadelphia, the Properties feature a combined 336,017 square feet of net rentable area as well as 330 surface parking spaces available. As of October 2026, the Properties had a weighted average occupancy of 63.1% and a weighted average lease term of approximately 4.9 years.

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Investment highlights

Additional Parking Income

Approximately 330 parking spaces generate a significant amount of additional income for both Properties, with parking income contributing over 20% of NOI.


Diverse Tenancy

The tenants occupying both buildings span, nonprofit, professional services, and entertainment users providing the investor with a diversified tenant portfolio.


Proximity and Scale Opportunity

The two properties collateralized by the subject Loans sit within immediate proximity to one another giving

the investor the opportunity to consolidate leasing, property management, and options for tenants

to expand between the two properties.

$22.5 Million Sub-Performing Office Loan Relationship | Philadelphia, PA (2 Properties)
$22.5 Million Sub-Performing Office Loan Relationship | Philadelphia, PA (2 Properties)

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Last updated Nov 10, 2026