$24.2 Million UPB Non-Performing Loan | Plaza Centro I

Investment Highlights

• Non-Performing Loan Sale Opportunity: The Loan sale affords an Investor the opportunity to acquire a non-performing loan secured by a first-lien Deed of Mortgage on a 283,454 sf retail property in Puerto Rico. The outstanding principal balance of the note is $24,269,451.  An Agreed Judgement of Foreclosure was entered in March 2021.
• Value Add Opportunity: Given the favorable local market dynamics, considerable lease-up can be achieved through enhanced management and capital investment.
• Receiver in Place: A Receiver was appointed in February 2021 and currently controlling the operations of the Property. A lender-controlled cash management account is in place.   
• Desirable Basis: An Investor stepping into the ownership position of a popular shopping center would do so at an attractive basis relative to replacement cost.
• Strong Property Location: The Property is well located with good access and visibility along a major thoroughfare with a population of approximately 160,000 living in a 5-mile radius.

Offering Summary

Jones Lang LaSalle and RealINSIGHT Marketplace are pleased to present the opportunity to acquire a $24,269,451 non-performing commercial loan secured by a first-lien Deed of Mortgage on 283,454 SF retail shopping center located in Caguas, Puerto Rico.

The loan was originated in January 2011 in the amount of $28,000,000, for a 10-year term maturing February, 2021 (the “Loan” or “Note).  At origination, the Loan was structured with a 6.25% fixed rate amortizing over a 30-year term. The Loan initially went non-performing as a result of the effects of Covid-19 in April 2020.  After being brought current three months later in July 2020, the Borrower subsequently defaulted and currently remains past due for the August 2020 payment. The Loan maturity defaulted in February 2021. Foreclosure has been initiated and a Receiver is currently in place. 

The collateral for Loan consists of a 283,454 SF retail shopping center located in Caguas, Puerto Rico (the "Collateral" or, the "Property").  The Property is currently anchored by Burlington Coat Factory and is 50.0% occupied as of July 2021, with 28 of 36 total tenant spaces currently occupied.  The Collateral is situated on a 25.24-acre site zoned UC-4, and is well located with good access and visibility along a major thoroughfare.