$39.2 Million Performing Mezzanine Loan Portfolio_Property for Sale

Chatham, NJ, US

$39.2 Million Performing Mezzanine Loan Portfolio

Asset Description

Jones Lang LaSalle (“JLL”) has been retained by the Seller on an exclusive basis to arrange the sale of a $39.2 million performing mezzanine loan portfolio (the “Portfolio”). The Portfolio includes two mezzanine loans (the “Loans”) secured by the ownership interests in entities which hold a 530-unit Mixed-Use property (Multifamily and Hospitality) in Tennessee and a 308-unit Multifamily property in New Jersey (the “Properties”).

Both Loans are fixed-rate, interest-only, and carry a WA coupon of 8.82% with a WA seasoning of 41 months. Investors will be able to capture the benefits of strong contractual cash flow with 55 months of WA term remaining.

The offering provides investors the opportunity to acquire a Portfolio of two performing mezzanine loans secured by pledges of equity on two fully stabilized Properties in attractive submarkets. The Seller will consider bids for (i) either Loan individually or (ii) the Portfolio in its entirety.

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Attributes

Loan Status

Performing

Listing Type

Living / Multi-housing

Media

Investment Highlights

ATTRACTIVE IN-PLACE YIELD

The Portfolio offers attractive in-place yields on a risk-adjusted basis. The Portfolio offers 100% fixed-rate loans with an attractive WA coupon of 8.82%, and both loans feature a combination of prepayment protection including yield maintenance and prepayment lockout.

WELL-SECURED

The positions are well-secured given the last dollar WA LTV of 73.6% per appraised values.

STRONG IN-PLACE OCCUPANCY AND CASH FLOW

With a WA occupancy of 92.6% and average rent of $2,535 per residential unit, the two Properties produce robust cash flow resulting in a WA DSCR of 1.50x and a WA Debt Yield of 6.9%.

PROVEN PAY HISTORY

With a WA seasoning of 41 months, the Portfolio has had a successful pandemic-proven payment track record. This is indicative of continued future performance through the WA remaining term of 55 months.

LONG-TERM OWNERS

The respective Sponsors on each asset have owned the Properties for over 8 years. Long term ownership indicates successful, committed borrower groups.