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 360-unit, garden-style multifamily property located in Orlando, Florida.
The loan is comprised of a $24.56 million initial funding and a potential future funding of $4.75 million, for a total potential loan amount of $29.31 million. The initial funding of $24.56 million represents 78 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 $2.1 billion comprised of 30 properties totaling more than 20,000 units.
The owner plans to implement renovations to the interiors, exteriors and common areas that may allow for increased rents consistent with the local market. At the time of closing, the property was 95 percent occupied.
“InPoint continues to build a diverse portfolio of loans secured by income producing quality real estate, aligning with our long-term strategic goals,” said Mitchell Sabshon, chief executive officer of InPoint. “In the past two months, InPoint has invested more than $40 million in first mortgage loans, contributing to a mature portfolio of $297 million.”
InPoint has created a portfolio of first mortgage loans, CMBS and credit loans secured by multifamily, industrial, office, hospitality, and retail 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 $151.9 million in investor equity, as of December 6, 2018.