JLL sells portfolio for Macquarie Private Debt

NEW YORK, January 2, 2020 — JLL Capital Markets sold a performing loan portfolio for Macquarie Private Debt, a division of Macquarie Asset Management. The portfolio includes 11 floating-rate, first mortgage loans with a weighted-average spread of 3.83% over 30-day LIBOR. The loans are collateralized by several preferred property types that include multi-housing (66% of portfolio unpaid principal balance), self-storage (27%) and office (7%) and are located across the United States. The buyer acquired the performing loan portfolio for approximately $150 million.

Each loan is structured with a LIBOR floor, an increasingly prevalent structure among lenders following recent market events. The loans are current and in good-standing, as proven by their payment history and weighted-average loan metrics that include a weighted-average debt-service coverage ratio of 1.30x and a weighted-average debt yield of 7.5%.

The JLL professionals who handled the sale assignment include Director Stephen Van Leer and Managing Director Sean Ryan.

“The portfolio provided the unique opportunity for the buyer to acquire a set of performing, light-transitional loans associated with strong sponsorship and high-quality real estate,” Van Leer said. “The offering received unbelievable market reception, mainly in part by the portfolio’s varying asset locations and product types that created an attractive, risk-diverse pool for investors.”

“We view this sale as a great example as to how some bridge lenders have opted to do a loan sale rather than a CLO execution,” Ryan added. “The entire process totaled 10 weeks and yielded the seller premium-to-par pricing.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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