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$107.5 Million Non-Performing Loan Relationship

000 Avenue Brooklyn, New York United States 11201
Asking Price Contact for pricing
N/A
NOI Net Operating Income N/A
Cap Rate N/A
Asking Price Contact for pricing
N/A
NOI Net Operating Income N/A
Cap Rate N/A

Documents

I accept the confidentiality agreement
Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. Approval for Deal Room access requires review by our Broker Team. You will be notified by email once your access is granted. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.
I accept the confidentiality agreement I accept the confidentiality agreement
Create an account on the Investor Center to save your search and investment preferences, save and share opportunities, access exclusive documents, and more. More questions? Visit our FAQ. You'll need to sign a Confidentiality Agreement (CA) to access exclusive documents in the Deal Room. Signing the CA means you agree not to divulge or release sensitive information related to this property. More questions? Visit our FAQ.

Attributes

Property Description

Jones Lang Lasalle (“JLL”) has been retained by the Seller on an exclusive basis to arrange the sale of a non-performing loan relationship with a total payoff amount of $107.5 million (the “Loan”). The Loan consists of both a first mortgage (“Senior Loan”) and a mezzanine loan (“Mezzanine Loan”) secured by a mixed-use asset located in Williamsburg, Brooklyn (the “Property” or the “Collateral”). The Senior Loan was originated in December 2017 with an aggregate balance of $78 million (current total payoff amount of $95,520,676) and originally structured with a 24-month term and two six-month extension options. The Senior Loan carries a floating rate of L + 8.25% (9.50% all-in floor) with interest-only payments calculated on an Actual / 360 day-count basis and a default rate of 24%. The Seller subsequently originated a $10 million Mezzanine Loan (current payoff amount of $12,000,494) and amended the Senior Loan simultaneously in October 2019. This short-term Mezzanine Loan carries a 15% fixed rate with I/O payments based on an Actual / 360 day-count basis. Collectively, the Loans were co-terminus and matured in March 2020. This offering provides investors with a unique opportunity to acquire a non-performing whole loan directly from the original lender at an attractive basis with a path to title on a well-located, newly built mixed-use asset in a highly desirable market that features an abundance of demand drivers.

Investment Highlights

  • INVESTOR OPTIONALITY: The Loan’s payment and maturity default status presents investors with the optionality to workout, modify or pursue title to the Collateral.
  • IMMEDIATE CASH FLOW WITH TREMENDOUS VALUE-ADD UPSIDE: Investors may potentially be able to step into the ownership position on a cash-flowing mixed-use asset with strong lease-up and future value appreciation potential.
  • HIGH QUALITY NEW CONSTRUCTION: The Property is a newly constructed Class A building that features modern, expansive living spaces, high end finishes and a wealth of luxurious amenities.
  • HIGH VISIBILITY LOCATION REPLETE WITH AMENITIES FOR TENANTS: The Property is centrally located in Williamsburg, which boasts a wealth of walkable shopping, dining and entertainment options. The area continues to attract high-end retail and young professionals looking for a lower-cost, vibrant alternative to Manhattan with newer developments that feature first-class amenities and immediate access to transportation.
  • FAVORABLE TAX PROGRAMS: By virtue of its location within Brooklyn, the Property is a part of “Affordable New York” (421-a), a 35-year tax-benefit program. In addition, the Industrial and Commercial Abatement Program (ICAP) gives the Property a tax abatement for 25 years.
Last Updated Date: 02 Feb 2021
Brett Rosenberg
Brett Rosenberg
Managing Director, Capital Markets
Kyle Kaminski
Production Associate

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Last Updated Date: 02 Feb 2021

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