InPoint Commercial Real Estate Income Inc., a commercial mortgage real estate investment trust, has originated a $12.4 million mortgage loan for an 8-story, Class A office building and parking structure located in Honolulu, Hawaii. The REIT is advised by a subsidiary of Inland Real Estate Investment Corporation, and sub-advised by an affiliate of Sound Point Capital Management LP.
The loan is comprised of a $12.4 million initial funding to refinance existing debt and a potential future funding of approximately $2.3 million for a loan total of $14.7 million.
The initial funding of $12.4 million represents 67 percent of the property’s appraised value. The borrower is a joint venture between two national commercial real estate firms.
The property is located in the Honolulu Central Business District. The immediate area includes many state and federal agencies, court houses and the expanding Hawaii Pacific University.
“The property is right downtown, walkable to all the major demand generators in the Honolulu CBD,” said Don MacKinnon, president of InPoint Commercial Real Estate Income Inc. “In addition, the submarket continues to grow, particularly with Hawaii Pacific University increasing their need for space. We are excited to be partnered with two seasoned operators that have shown they can increase value at the asset.”
InPoint Commercial Real Estate Income focuses on originating, acquiring and managing a diversified credit portfolio secured by commercial real estate properties primarily within the United States. Inland Securities Corporation is the dealer manager for the offering. As of September 30, 2017, the company’s portfolio of real estate securities consisted of three CMBS investments with a fair value of $26.5 million.