ARI's year-to-date transaction volume stands at $423.5 million of committed capital, according to a statement announcing the new loans.
The bulk of that business was done in Q1. After a strong start to the year, ARI's Q1 debt investments consisted of $251 million in first mortgage loans, as well as $77 million in subordinate loans, as previously reported.
ARI specializes on floating-rate first mortgage debt on transitional properties. The firm noted that the latest transactions are with “well-capitalized sponsors who intend to improve the current use of the underlying properties, one of which is a repeat borrower.”
The largest of the two is a $50 million first mortgage loan secured by two midtown Manhattan office buildings with ground floor retail. The floating rate loan has a two-year initial term with one six-month extension option and an appraised loan-to-value of approximately 52 percent. The loan has been underwritten to generate a levered internal rate of return (IRR) of approximately 14 percent.
The second is a $45.5 million first mortgage loan secured by five residential and commercial properties with ground floor retail in the Williamsburg section of Brooklyn, New York. The floating rate loan has a two-year initial term and an appraised LTV of approximately 53 percent. That loan has been underwritten to generate a levered IRR of approximately 17 percent.
In connection with the JPMorgan Facility, the company has received approximately $115 million for a first mortgage loan secured by an assemblage of properties in the Design District of Miami, which does not count toward the $800 million facility's capacity.