InPoint Commercial Real Estate Income Inc., a commercial mortgage real estate investment trust sponsored by Inland Real Estate Investment Corporation and sub-advised by an affiliate of Sound Point Capital Management LP, has originated a first mortgage loan for a 480-unit, garden-style multifamily property located in Dallas, Texas. The loan is comprised of a $13.43 million initial funding and a potential future funding of $6.07 million for a total potential loan amount of $19.5 million.
The initial funding of $13.43 million represents 76 percent of the property’s appraised value. The property owner is a commercial real estate investment company focused on value-add multifamily assets, with a portfolio exceeding $1.7 billion comprised of 30 properties and over 18,250 units, with 1,100 units located in the Dallas area.
With these funds, the property owner plans to complete renovations to the property’s interiors, exteriors and common areas that may allow for increased rents consistent with the local market.
“This multifamily property is ideally located in the high-performing South Dallas submarket, boasting strong demographics and providing convenient access to Interstate 45 and a direct route to the Dallas Central Business District,” said Don MacKinnon, president of InPoint.
“InPoint continues to experience accelerated growth, building a portfolio of size and scale consistent with the company’s long-term strategic goals,” added Mitchell Sabshon, chief executive officer of InPoint. “InPoint has invested more than $52 million over the past month, contributing to a mature portfolio of $257 million.”
InPoint has created a portfolio of first mortgage loans, CMBS and credit loans secured by hospitality, multifamily, office, retail and industrial real estate assets located across the country. The portfolio is composed of 96 percent floating-rate investments. The REIT launched its private offering in October 2016 and has raised approximately $128.7 million in investor equity, as of October 3, 2018.