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Marketplace Listing - Other

$16.3MM Serie A Bond Sale

Philadelphia, PA

Unlisted

Asking Price:
  • Asset Type
  • Note
  • Property Type
  • Other
  • Original Balance
  • $17,000,000
  • Unpaid Balance (UPB)
  • $16,313,280
  • UPB As Of Date
  • Feb 22, 2021
  • Origination Date
  • Jun 30, 2015
  • Maturity Date
  • Jul 05, 2047
  • Loan Rate
  • 3.25%

$16.3MM Serie A Bond Sale

Newmark has been exclusively engaged to offer investors the opportunity to acquire the ~$16.3 Million, Non-Performing, 2015 Serie A Bond (the “Loan”) secured by a senior lien on a five-story, state-of-the-art, asset currently utilized as a museum in Philadelphia, PA (the “Collateral” or “Property”).  Note that $13.75 MM of 2015 Serie B Bonds are not part of this offering and are secured on a parity basis.

The Loan was originated in June 2015 with July 2047 maturity and a 3.25% coupon.

The Property, built in 2010 with high-end finishes throughout, is located on America’s greatest cultural and historic site, Independence Mall.  It offers unsurpassed views overlooking Independence Hall, the Liberty Bell and the National Constitution Center.  

Situated in the epicenter of Philadelphia’s largest tourist attractions, and adjacent to Old City, Society Hill and Washington Square, allows for unlimited use potential within one of Philadelphia’s highest demographic neighborhoods.  CMX-4 zoning provides for a multitude of uses i.e. Residential Condo, Multifamily, Office, Life Science, Retail, Restaurants, Hospitality, Museum, Mixed-Use and numerous others.  The City’s highest-priced residential condo development is located just two blocks away.

The opportunity presents investors the ability to acquire a low-leverage, non-performing, loan secured by an exceptional asset with unmatched location.

This overview is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities.  This overview may include or be based in part on projections, valuations, estimates and other financial data supplied by third parties, which has not been verified.  This information should not be relied upon for the purpose of investing in the Loan or for any other purpose.  Any information regarding projected or estimated investment returns are estimates only and should not be considered indicative of the actual results that may be realized or predictive of the performance of the Loan.

INVESTMENT HIGHLIGHTS

Rare Offering: Opportunity to acquire the ~$16.3 Million, Non-Performing, 2015 Serie A Bond allowing for sizable investment.  Exceptional security via the first position and associated rights. Low-leverage /25% Appraised LTV /Attractive basis. Opportunity to unlock significant value through strategic re-purposing of the collateral.

Exceptional Collateral: Constructed in 2010 with significant degree of high-end finishes, offering great appeal and marketability. The physical, functional, and locational attributes allow for an adaptive re-use. Five-story atrium along the western portion of the asset is an attractive and unparalleled feature in the City relative to other properties.  Abundance of public parking nearby.  Zoning provides for high-density multi-family or commercial uses intended to accommodate mixed-use development, including a broad range of non-residential uses, in the Center City area.

Tax Benefits: Abundance of economic incentives specific to Philadelphia are available. 10-year tax abatement for New Development. The Property is located in a Keystone Innovation Zone, which provides tax credits to for-profit companies in the life sciences and tech.

Unmatched Location: Located in the heart of Independence Mall, across from the Liberty Bell, Independence Hall, Constitution Center, with proximity to employment centers, regional transit, and neighborhood amenities which further enhances the allure of the property for a variety of uses.  Primary employment within the neighborhood consists of various office buildings in the eastern part of the CBD and numerous retail and dining establishments in neighboring Old City to the northeast. The US Federal Courthouse, Federal Reserve, and US Treasury are examples of the major employment opportunities in the area.

DISCLOSURES

The material provided herein is for informational purposes only.  It does not constitute an offer to sell or a solicitation of an offer to buy any securities.  Any such offering of the Loan will be made only in accordance with the terms and conditions set forth in a purchase and sale agreement for the Loan.
 
Investment in the Loan  is suitable only for sophisticated investors for whom an investment in the Loan does not constitute a complete investment program and who fully understand, and are willing to assume, the risks involved in an investment in the Loan.
 
No person has been authorized to give any information or to make any representation, warranty, statement or assurance not contained in the purchase and sale agreement and, if given or made, such other information or representation, warranty, statement or assurance may not be relied upon.
 
The sale of the Loan will be made in reliance upon an exemption from registration under the United States Securities Act of 1933, as amended, for offers and sales of securities that do not involve a public offering.  No public or other market will develop for the interests, and the interests are not generally otherwise transferable.

 

Download Offering Memorandum

Disclaimer: The information being provided herein is for informational purposes only. No representation or warranty is made as to the accuracy or completeness of any information contained herein, including, without limitation, any information regarding the condition of the Property, the condition of title or Property descriptions.

Any documents and/or pictures posted herein or elsewhere on the RealINSIGHT Marketplace, (the "Website") are for informational purposes only, and may not represent the current condition of the Property or the condition of the Property at the time of sale. The posting of pictures herein or elsewhere on the Website does not constitute a guarantee that any items represented in the pictures will be present when the buyer takes possession of the Property.

You are encouraged to conduct your own due diligence and investigate all matters relating to the Property. It is recommended that you seek independent advice, including legal advice, to perform your due diligence and that you use good faith efforts in determining that the content of all information provided to or obtained by you is accurate.

Unlisted

Asking Price:

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