Non-Performing Note Secured by 8 Freestanding Retail Properties in the Southeast

Investment Highlights

• Direct Sale From Special Servicer: This sale provides investors with a unique opportunity to acquire a non-performing loan directly from a special servicer.
• Multiple Use-Options: With no encumbrances in-place, the Collateral can be re-leased for retail or potentially re-purposed into industrial given the Collateral’s proximity to major transportation thoroughfares.
• Loan Status Offers Investor Optionality: The Loan is in monetary default which presents investors the optionality to attempt to modify the Loan terms or pursue remedies.
• Favorable Basis: With the non-performing nature of the Loan and the Collateral’s current status, this sale provides investors an opportunity to acquire a Loan well below the Collateral’s replacement costs.
• Clear Path to Title: Acquisition of the Loan in receivership allows an investor an expedited path to title.

Executive Summary

Jones Lang LaSalle (“JLL”), in conjunction with RealINSIGHT Marketplace, has been retained by the Seller on an exclusive basis to arrange the sale of a non-performing senior mortgage loan with an unpaid principal balance of $9.6M (the “Loan”). The Loan is cross-collateralized by eight former Fred’s Pharmacy buildings located throughout the Southeast (the “Property” or the “Collateral”). The subject Loan includes the following attributes:

• Originated in April of 2016, structured with a fixed-rate of 5.45% for a 10-year term and amortizing on a 30-year schedule.
• Loan was transferred to special servicing in August of 2019 due to imminent monetary default when Fred’s Pharmacy filed for bankruptcy protection and announced they were closing all of their stores.
• A receiver was appointed in February 2020, providing transparency into operations at the assets.
• Sale of the Loan in receivership provides a potential investor with a clearer path to title.

The offering provides investors the unique opportunity to acquire a non-performing loan collateralized by eight well-located boxes in some of the Southeast’s top performing retail markets.