Denver, CO, US, Americas

$24.1 Million Performing Office Loan | Denver, CO

Attributes

Building area gross

14,798 m²

Occupancy

72.1%

Year built

1895

Year renovated

2020

Unpaid principal balance

€22,387,994

Maturity date

13/12/2024

Portfolio description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $24.1 million performing loan (the “Loan” or “Note”) secured a first-lien deed of trust on the fee simple interest in two cross-collateralized office properties (the “Properties” or “Collateral”). The Collateral consists of a 95,394 SF class-A office property and a 65,295 SF class-B office property both located in downtown Denver.

The Note was originated in December 2016 to the Sponsor to acquire the subject Properties. The Loan is structured with a floating interest rate of AMERIBOR + 2.20% and monthly payments of principal & interest. The Loan has a seasoning of 88 months and a maturity date of December 13, 2024. The Note currently carries a 13.8% debt yield and 64.5% LTV. The offering provides investors the opportunity to acquire a performing Note with a near-term maturity.

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Investment Highlights

WELL-SECURED LENDER BASIS

The Loans are well-secured by the underlying assets with an LTV of 64.5%.

STRONG IN-PLACE CASH FLOW

The two Properties produce robust cash flow resulting in a 13.8% debt yield. With a full cash-sweep in effect, investors can benefit from Property-level income.

PROVEN BORROWER COMMITMENT

With a seasoning of 88 months, the Sponsor has proven their commitment to the Properties. This is indicative of future performance through the remaining term.

RECENT PROPERTY RENOVATIONS

In 2020, the Sponsor invested in extensive capital and cosmetic improvements, including upgrades to the lobbies, common corridors, and restrooms.