$107.5 Million Non-Performing Loan Relationship

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.

• 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.