InPoint Commercial Real Estate Income Originates $12 Million First Mortgage Loan
InPoint Commercial Real Estate Income Inc., a commercial mortgage real estate investment trust, has originated a first mortgage loan for the refinancing of a Class A office building located in the Eisenhower Avenue Corridor of Alexandria, Virginia approximately 10 miles south of Washington, D.C. The loan is comprised of a $12 million initial funding and potential future funding of $8 million.
The $12 million initial loan funding represents 55 percent of the property’s appraised value. The borrower is a joint venture between two real estate operators, one with a 40-year track record of developing, investing and managing real estate in the Washington, D.C. market and the other who has invested more than $750 million of equity in real estate assets.
“InPoint was attracted to this deal because the operators are best-in-class and have a long track record of executing their business plans,” said Don MacKinnon, president of InPoint Commercial Real Estate Income Inc. “The recently renovated property is well positioned to take advantage of the rapidly expanding submarket.”
The National Science Foundation, a $13.7 billion federal agency, recently moved their headquarters less than a mile from the property, which is expected to create an estimated 3,000 new jobs and bring more than 200,000 visitors per year to the submarket.
In other InPoint news, the REIT recently originated a $12.4 million mortgage loan for an 8-story, Class A office building and parking structure located in Honolulu, Hawaii.
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. 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. 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.
