|Unpaid Principal Balance||
|Current Interest Rate||3.5%|
Jones Lang Lasalle (“JLL”) has been retained by the Seller on an exclusive basis to arrange the sale of a $14.0 million performing loan (the “Loan” or “Note”) secured by a first-lien mortgage on a 331,804 SF mall located in Santa Maria, California (the “Property” or “Collateral”). The Loan has a current principal balance of $13,993,645. It was originated in June 2018 as seller financing and structured with a three-year term (including two, one-year extension options), full-term I/O payments and a floating rate of L + 3.50%. At origination, the Note featured a maximum loan amount of $20,267,500 with $6,000,000 in future funding.
A modification took effect in June 2021, resulting in a one-year extension and pay down of the outstanding principal balance. The Loan has continued to perform per the terms of the modification agreement. This offering provides investors with a unique opportunity to acquire a performing note at an attractive basis with upcoming maturity dates providing additional optionality.
PROVEN PERFORMANCE AND EXPERIENCED SPONSORSHIP
The Loan has continued to pay since origination and throughout the COVID-19 pandemic. The institutional sponsorship includes an experience mall owner operator.
The current UPB ($42 PSF) represents a significant discount to replacement cost.
The Collateral’s infill location within downtown Santa Maria is adjacent to several local government offices and near residential and commercial density.
The near-term maturity in June 2022 affords investors additional optionality. The extension option was structured with a 0.25% fee.
Property level cash flow is currently being swept to a lockbox.