June 21, 2018
New York-based KKR Real Estate Finance Trust Inc. (KREF) closed two floating-rate senior loan transactions totaling $378.7 million. The deals include a $213.7-million loan secured by Related Beal’s 451 D street (pictured), a 474,000-square-foot, Class B+ office building in Boston, and a $165-million loan secured by Nightingale Properties’ 1635 Market St. and 1835 Market St., two Class B+ office buildings totaling 974,000 square feet in Philadelphia.
The Boston loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+2.40% and an appraised loan-to-value of roughly 69%. Eastdil Secured arranged the debt. The Philadelphia loan has a two-year initial term with three one-year extension options, carries a coupon of LIBOR+2.45% and an LTV of approximately 71%.
The company says the transactions are consistent with its strategy of lending in major markets to well-capitalized sponsors. So far this year, KREF has originated eight senior loans totaling more than $1.1 billion, resulting in a $3 billion portfolio.
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