Overview
Jones Lang LaSalle ("JLL") has been retained on an exclusive basis by the Seller, a commercial bank, to arrange the sale of two non-performing first mortgage loans (the "Loans") with unpaid principal balances of $10.3 million and $5.6 million. Respectively, the Loans are secured by first-lien priority fee-simple interests in two multifamily buildings located in Washington Heights and a mixed-use building located in the West Bronx (the "Properties"). Investors are encouraged to bid either individually or as a portfolio.
Washington Heights
The Loan was originated in 2017 with a total commitment of $11.9 million to acquire the Properties and currently features a fixed interest rate of 5.46%. The Loan holds a maturity of February 28, 2025. As of March 2024, the Loan was non-performing due to payment default, and currently holds an unpaid principal balance of $10,338,758.
The Properties, located two-blocks from one another, are both five-story walk-up buildings, holding 51 units total. Both Properties contain rent-regulated units and are located just a few blocks from the 1-Train and A-Train.
West Bronx
The Loan was originated in 2017 with a total commitment of $6.2 millionto acquire the Property, and currently features a fixed interest rate of 6.88%. The Loan reached maturity on December 1, 2023. As of March 2024, the Loan was non-performing due to maturity default, with an unpaid principal balance of $5,634,734.
The Property is a six-story mixed-use building, holding 46 rent-regulated residential units and 3 commercial units. Just one block away from the Walter Gladwin Park and both the 174 Street (2, 5) and Tremont Av (B, D) subway stations.
Investment Highlights
FAMILY OWNED AND OPERATED
All three buildings are owned and operated by two separate family offices.
STRONG SUBMARKET MOMENTUM
Washington Heights is rapidly expanding and has been dubbed as the “Last Bastion of Affordability” in Manhattan. The neighborhood offers moderate rents, spacious apartments, and ample green spaces. Crotona Park, known as the Central Park of the West Bronx, provides a desirable suburban feel to a neighborhood with stable affordable living.
TRANIST ORIENTED
All three Properties are strategically located proximate to the subway, near the 1 Train and A Train (Washington Heights) and the 2, 5, B, & D Trains (West Bronx), allowing for efficient access to the rest of New York City.
PATH TO OWNERSHIP
With both loans currently in default, the buyer inherits the opportunity to enforce remedies and direct a path to title.
ATTRACTIVE BASIS
At $15,973,492 in total unpaid principal balance, the Loan basis is $164,675 Per Unit, below the Borrower’s acquisition basis of $247,938 Per Unit in 2017.
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