JLL Income Property Trust, a non-traded daily net asset value real estate investment trust, has originated a $48 million senior, secured floating rate first mortgage loan on an apartment community in Charleston, S.C. The loan has an initial three-year term, earns an interest rate of 3.85% above the secured overnight financing rate – with a SOFR floor of 4% – and is projected to deliver a yield of approximately 8% to 9%.
“With continued disruption in the traditional real estate lending markets, we see tremendous opportunities to make accretive loans on attractive properties that add value to our diversified real estate portfolio,” said Allan Swaringen, president and chief executive officer of JLL Income Property Trust. “This Charleston investment is expected to provide JLL Income Property Trust with durable cash flows, downside protection through a senior position to the equity investment in the property, and added diversification to our portfolio of core equity and debt investments.”
“This investment brings our senior secured first mortgage loan portfolio to more than $100 million. Over time we intend to invest a meaningful allocation toward this private debt sector to capitalize on this higher interest rate environment to the benefit of our stockholders.” Swaringen added.
The property is a 358-unit apartment community spread across 13 three-story residential buildings in North Charleston, two miles from Charleston International Airport and seven miles from the U.S. Joint Airforce Charleston, the largest employer in the region. Ongoing development in the immediate area includes a $1 billion medical campus for Roper St. Francis Healthcare that is expected to bring more than 2,000 jobs to the area. Other major employers in the area include Boeing, the Medical University of South Carolina, Trident Health System, and the Charleston County School District, among others.
JLL Income Property Trust is an institutionally managed real estate investment trust with approximately $7 billion in portfolio equity and debt investment. It owns and manages a diversified portfolio of income-producing residential, industrial, grocery-anchored retail, healthcare, and office properties located in the United States.
Click here to visit The DI Wire directory page.
Read the full article here
