Retail

$66.3 Million Non-Performing Retail Loan

South Barrington, Illinois United States
Asking Price
NOI Net Operating Income N/A
Cap Rate N/A
Asking Price
NOI Net Operating Income N/A
Cap Rate N/A

Key facts

Loan Status Non-Performing
Unpaid Principal Balance
Listing Type Retail

Property description

Jones Lang Lasalle (“JLL”) has been retained by the Seller on an exclusive basis to arrange the sale of a $66.3 million non-performing loan (the “Loan” or “Note”) secured by the first mortgage on a lifestyle shopping center located in the Chicago MSA (the “Property” or “Collateral”).  The Loan was originally structured with a 36-month initial term (including 1 (one), 24-month extension option) and full-term I/O payments based on a floating rate of L + 2.25%. The Borrower utilized the extension option and kept the Loan current through March 2020. Payment and maturity default occurred the following month, triggering the issuance of a default letter by Lender in July 2020. Lender subsequently commenced foreclosure proceedings, resulting in the appointment of a receiver in September 2020. This offering provides investors with a unique opportunity to acquire a non-performing note at an attractive basis secured by a high-quality shopping center that offers control over operations with a receiver in-place, immediate cash flow and additional lease-up potential.


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Investment highlights

RECEIVER IN-PLACE AND FORECLOSURE INITIATED

Foreclosure was initiated in September 2020 facilitating an investor’s potential path to obtaining ownership of the property. A Receiver was installed the same month, giving an investor transparency into property-level operations and the ability to sweep cash flow and disburse accordingly prior to obtaining title.


DESIRABLE BASIS

Investors may potentially be able to step into the ownership position of a popular lifestyle shopping center at an attractive basis.


IMMEDIATE CASH FLOW WITH UPSIDE

The Property is currently operating at a strong debt yield while offering additional lease-up potential.


SIGNIFICANT AREA GROWTH POTENTIAL

Strong infill development potential as the center is positioned in proximity to an affluent residential cluster.

Last Updated Date: 30 Sep 2021
Sean Ryan
Sean Ryan
Managing Director, Capital Markets
Kyle Kaminski
Kyle Kaminski
Vice President, Production Support

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Last Updated Date: 30 Sep 2021

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