JLL sells portfolio for Macquarie Private Debt
Institutional investment manager acquired the portfolio of 11 first mortgage loans backed by properties across the country
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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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.