$31 Million Non-Performing Office Loan  |  New Haven, CT_Property for Sale
$31 Million Non-Performing Office Loan  |  New Haven, CT_Property for Sale

$31 Million Non-Performing Office Loan | New Haven, CT

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller, a regional bank, to arrange the sale of a $31 million non-performing first-mortgage loan (the “Loan”). The Loan is secured by a first-lien mortgage on the fee-simple interest in a Class-A office building located in New Haven, Connecticut (the “Property”). The Loan was originated in 2010 with a total commitment of $40.0 million to refinance the Property and most recently featured interest-only payments at a rate of 8.50%. The Loan reached maturity on March 30, 2023. As of February 2, 2024, the Loan was non-performing under maturity default, with an unpaid balance of $30,987,608 ($74 PSF).


The Property comprises 418,595 NRA of Class-A office space across one building + parking garage situated along the waterfront of the Harbor in New Haven, Connecticut, and was 43.2% occupied as of May 14, 2024, with a WALT of 1.3 years. Directly off exit 46 of I-95, and at the intersections of Route 34 and I-91, the Property is both highly visible and easily accessed. The Property offers investors an iconic skyline office or a prime residential conversion opportunity along the banks of the Long Island Sound.

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Attributes

Occupancy
45.6%
WALT
1.3 years
Number of floors
15 floors
Building area net
418,595 sf
Unpaid principal balance
£24,434,225
Parking spaces
1,093
Land area net
9.4 acres
Call for offers
16/07/2024

Media

Investment Highlights

OFFICE BASIS RESET OR MULTIFAMILY CONVERSION OPTIONALITY

Tenants desire differentiated, de-commoditized space - refreshing office product remains in high demand. The current size and layout of the suites is diversified, allowing the Property to compete for a variety of users in the market. With a total site size of +/- 9.4 acres, and desirable water views, investors also have the optionality to capitalize on the residential conversion market and benefit from the surrounding amenity base.


HIGHLY VISIBLE LOCATION WITH TREMENDOUS ACCESS

Strategically located with seamless access to I-95, I-91, and the Amtrak / Metro North, the Property is one of the best located office parks in New Haven’s submarket. Additionally, the Property currently offers shuttle service to New Haven Union Station and downtown New Haven. Future ownership will benefit from the Property’s direct visibility from the busy interstates and access to a densifying retail node of the city.


WELL-AMENITIZED PROPERTY

The Property, a one building office park plus parking garage, has benefited from several capital improvements by current ownership. The Property enjoys a full-service fitness center, conference facilities, on-site dining and daycare, and an ~1,100 space parking garage. Hovering close to 40.0% occupancy, the remaining space is well positioned for investors to significantly boost cash flow through continued leasing.


STRONG SUBMARKET MOMENTUM

New Haven is home to Connecticut’s corporate tenant base with 15 Fortune 500 companies taking space in the submarket. Coupled with the development of over 2,000 apartment units since 2018, New Haven has emerged as a premier residential community.


OPPORTUNITY ZONE

According to The Tax Cuts and Jobs Act, the neighborhood has been designated as a Qualified Opportunity Zone. Investing in this Zone allows for temporary tax deferral on initial capital gain, tax exclusion on up to 15% of the original gain, and permanent tax exclusion on capital gains from QOF investments held for 10+ years.

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$31 Million Non-Performing Office Loan | New Haven, CT (0 Properties)

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Last updated
12 Jun 2024