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InPoint Commercial Real Estate Income, Inc. Announces Origination of $7.5 Million Mezzanine LoanOctober 23, 2017
Oak Brook, Ill. – InPoint Commercial Real Estate Income, Inc. (“InPoint”), a commercial mortgage real estate investment trust sub-advised by an affiliate of Sound Point Capital Management, LP, announced today that, through its operating partnership, it originated a $7.5 million mezzanine loan for the acquisition of three Class-A office buildings totaling 306,534 square feet located in Hopewell Township, New Jersey (the “Property”). The borrower, a joint venture between two real estate operators with over $300 million of real estate assets, purchased the Property for $73.6 million and financed the purchase with a $51.4 million first mortgage loan from an unaffiliated lender, the $7.5 million mezzanine loan originated by InPoint, and $15.6 million of equity capital.
The Property is situated 10 miles from downtown Princeton, New Jersey and is part of the Hopewell Corporate Campus, which consists of 12 Class-A office buildings totaling approximately 1.8 million square feet. The Property is 100 percent leased to five tenants with an average lease term of approximately 13 years. Eighty-nine percent of the occupied space at the Property is leased to investment grade tenants, and the two largest investment grade tenants account for 70 percent of the total gross leasable area and has leases expiring between 2031 and 2034.
“InPoint’s origination focused investment strategy, combined with the Sound Point team’s deep origination relationships, provides an opportunity for InPoint to make loans backed by high quality properties owned by experienced managers,” said Don MacKinnon, President of InPoint and Portfolio Manager for InPoint’s sub-advisor.
About InPoint Commercial Real Estate Income, Inc.
Externally managed by a wholly-owned indirect subsidiary of Inland Real Estate Investment Corporation, InPoint Commercial Real Estate Income, Inc. is a commercial mortgage real estate investment trust that seeks to originate, acquire and manage a diversified debt portfolio secured by commercial real estate properties primarily within the United States. Single-tenant net leased properties also may be acquired as appropriate based on market opportunity.