$15.6 Million Non-Performing Orlando Office Loan
$15.6 Million Non-Performing Orlando Office Loan
$15.6 Million Non-Performing Orlando Office Loan
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Tom is a Senior Managing Director in the New York office of JLL Capital Markets, Americas. He joined JLL as part of the HFF acquisition and has 10 years of experience in the commercial real estate and finance industry. He is primarily responsible for loan sales, REO Sales and the origination and execution of debt and equity finance throughout the United States.
Tom started at HFF in June 2017. Before that, he was a managing director with Mission Capital. He began his career with Colonial Bank and BB&T working in the special assets department.
- Property Type
- Office
- Deal Type
- Loan Sale
- Risk Profile
- Distressed
THE INVESTMENT OPPORTUNITY
Jones Lang LaSalle ("JLL") has been retained on an exclusive basis by the Seller, a multinational financial services company, to arrange the sale of a $15.6 million non-performing first mortgage loan (the "Loan"). The Loan is secured by a first-lien priority fee-simple interest in a Class-A office building located in Orlando, Florida (the "Property"). The Loan was originated in May 2020 to finance the acquisition and renovation of the Property. The Loan reached maturity on June 1, 2023. As of August 16, 2023, the Loan was in maturity default, with an unpaid balance of $15,601,767 ($111 PSF).
The Property comprises 127,632 SF of Class-A office space and 13,493 SF of retail space located in Downtown Orlando, Florida, and was 41.6% leased as of June 30, 2023. Fueled by the demand for creative space, the building offers a refreshingly different office environment for tenants. With 12-16’ ceiling heights, flexible meeting spaces, community seating, and a social hub, the Property is fully modernized and amenitized to match the needs of the flourishing submarket.
INVESTMENT HIGHLIGHTS
Path to Ownership
A consensual Deed-in-Lieu ownership option is anticipated to be available prior to closing.
Flight to Quality
The Property has been totally revamped, benefiting from over $7.0M in capital improvements since 2020. This focused primarily on exterior improvements, lobby renovations, bathrooms/amenities, and specialty suites. Hovering close to 40.0% occupancy (as of June 2023), the remaining space is well positioned for investors to significantly boost cash flow through continued leasing.
Powerful Submarket Momentum
Class-A Orlando CBD office has experienced over 20% rent growth since 2017, while holding approximately 90% occupancy. With an average suite size of ~10,000 SF, the Property is well-suited to attract the smaller tenants that comprise the submarket’s demand pool. Five (5) new leases were executed in H2 2022.
True CBD Lifestyle
The Property is strategically located on the corner of North Orange Avenue and Jefferson Avenue, nestled in the heart of Orlando’s Central Business District. With a Walk Score of 94, the access to amenities is unparalleled. The area boasts 50+ walkable restaurants. The regional train and bus terminals are also located just steps away, offering seamless access to the rest of the city.
Attractive Basis
At $15,601,767 in total unpaid principal balance, the Loan basis is at a discount to the Borrower’s acquisition basis in 2019.