JLL Income Property Trust announced on January 7, 2025, the origination of a $32 million senior, secured floating rate first mortgage loan on a newly constructed apartment community in north suburban Houston, Texas. This loan has an initial three-year term and earns an interest rate of 3% above SOFR, with a SOFR floor of 3.25%, projected to deliver an attractive yield of approximately 7% to 8%.
This loan origination expands JLL Income Property Trust's senior secured floating rate first mortgage portfolio to over $130 million. The trust is capitalizing on the disruption in traditional real estate lending markets, where an estimated $1.2 trillion in real estate loans are maturing over the next two years.
The underlying collateral for the loan is a 231-unit apartment community in Tomball, Texas, a market experiencing significant population and commercial growth. This strategic move provides accretive cash flows, downside protection, and diversification across the trust's core equity and debt investments.
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