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KDM2019-N001Q Print

Issued $9,690,000.00 3186 hits

Summary

  • Location Hammonton, NJ 08037, USA
  • Price $9,690,000.00
  • Property Type: Commercial Building
  • Status: Issued
  • Interest Rate: 6.25 %
  • KDM Status:
    • Regular Distributions Being Made
    • Latest Loan to Value Assessment
    • Latest DSCR Assessment
  • Loan Status:
    • Lockbox triggered
  • CUSIP: 50067AAK8
  • Closing Date: 2019-03-25
  • LTV: 68 %
  • Maturity Date: 2022-03-25
  • Rating: A-

Property Description

Loan Update 5/2/2020: 

Regarding Loan KDM2019-L001, on April 22, 2020, we were informed that Sponsor deposited  two tenant checks to his own accounts that should have been forwarded to KDM pursuant to the lockbox agreement. Sponsor reported to KDM that he did so in anticipation of pandemic-related forbearance from KDM, as lender.

In response, KDM engaged New Jersey council and they sent a default letter and offer of forbearance on April 28.  Pursuant to the terms of the default letter, today, Sponsor has submitted an offer of forbearance to make up the shortfall that is acceptable to KDM. Tenants have been contacted to assure they send payments directly to KDM.

Based on KDM’s discussion with Sponsor and tenants, KDM has no reason to believe that tenants will not make future payments under the lockbox in a timely fashion. KDM has paid the interest due on the related KDM 2019-N001Q Mortgage Secured Notes and expects the corresponding loan will continue to perform under the modified terms.

Loan Update 2/15/2020:

December 2019 payment was only partially received. In January 2020, loan was put on lockbox. Tenants making payments to lockbox. MSNs paid without interruption.

The subject properties consist of four flex/office buildings in southern New Jersey

$9,690,000.00 Loan amount
$14,250,000 appraised value
68% LTV

Deal Highlights

  • Stabilized properties
  • Long term tenants
  • Low loan $/sq foot - $75.09
  • Stable market

They are located at the following addresses 1111 Reading Ave, Hammonton, NJ, 392 White Horse Pike Hammonton, NJ, 6727 Delilah Road Egg Harbor Township, NJ and 897 Twelfth Street, Hammonton, NJ.

  • The property at 1111 Reading Avenue is a NNN lease, fully occupied by American Fiberglass Company.
  • 392 White Horse Pike is a modified NNN lease and is also fully occupied. The largest tenant, Liberty Dialysis has invested over $1,000,000 in upgrades. Liberty Dialysis is currently exercising their second of 3 -five year lease extensions.
  • Masterminds, a long term tenant at 6727 Delilah Road has recently renewd their lease.
  • 897 Twelfth Street is fully occipied including a long term tenant for the past 18 years. This property also has installed solar panels, which has provided an average of $87,305 of yearly revenue for the past five years.

 

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