Commercial real estate peer-to-peer lender Money360 announced on Monday the successful closing of a $6.75 million commercial real estate loan in Chicago. The loan was funded by an institutional investor.
The borrower is an investment firm with offices in Brazil and the United States with a focus on operating data centers and IT services. They are using the capital from the two-year loan to finance the acquisition and capital improvement of a 209,557 square foot, Class A commercial office building they purchased from a NYSE-traded, multi-billion dollar energy company. The remainder will be earmarked as working capital.
The deal came with a loan-to-value rate of 57.7 percent. An unencumbered Manhattan townhome valued at $2.95 million was secured as additional collateral at closing.
Upon closing the new owners, secured a 10-year lease of two stories from a data management services group. That will support debt service by more than two times following a rent abatement.
“More and more institutional investors are investing via online marketplace lending platforms, such as Money360,” said Evan Gentry, CEO of Money360. “I’m not surprised because online marketplace platforms such as ours provide investors with higher risk-adjusted returns than traditional investment vehicles. Within marketplace lending, the real estate sector is seeing rapid growth driven by the security inherently provided with collateral-based lending.”