Hotels & Hospitality

$7.3 Million Non-Performing Mixed-Use (Hotel & CRE) Loan

Sayville, New York United States
Asking Price Contact for pricing
Area Size
NOI Net Operating Income N/A


Loan Status Non-Performing
Property Type Hotels & Hospitality,Hospitality

Asset Description

Jones Lang LaSalle ("JLL") has been retained on an exclusive basis to arrange the sale of a $7.3 million non-performing mixed-use resort loan (the "Loan"). The Loan was originated in March 2015 with an initial term of 10 years and a total principal balance of $8 million. Comprised of interest-only payments for the initial 24-months, the Loan converted to fully amortizing, based on a 25-year schedule, commencing in April 2017. The Loan carries a fixed interest rate of 3.00% and features one, five-year extension option that is subject to annual interest rate escalations. The loan is currently in payment default and accruing interest at the default rate of 16%. 

The Loan is secured by the fee simple and leasehold interests in a mixed-use island resort property in Sayville, NY (the "Property" or "Resort"). The Property is comprised of a resort including boutique hospitality, retail and multifamily assets. The hospitality asset features 21-guestrooms and is completed with a restaurant, general store and retail space. The retail collateral features numerous restaurants, bars, and a nightclub. The multifamily assets are composed of a three-bedroom, one-bath residence and a 16-bedroom, eight-bath residence that house resort staff. In addition, the Resort features nine boat slips along the Great South Bay.

The offering presents investors the opportunity to acquire a non-performing loan with a potential path to ownership at an attractive basis.


Investment Highlights

PATH TO OWNERSHIP: The defaulted Loan provides investors with a unique opportunity to acquire a non-performing loan with a potential path to title.

DESIRABLE BASIS: Investors have the potential to step into the ownership position on the asset at a favorable basis.

IRREPLACEABLE ASSET: The Loan is secured by a resort and corresponding commercial real estate that caters to a diverse community in a one-of-a-kind location that booms with tourists every summer.

TOURISM RECOVERY: The island resort is poised for a strong summer as pent up leisure travel continues to recover following the Covid pandemic.

ACCRUING AT SIZEABLE DEFAULT RATE: The non-performing Loan is currently accruing interest at the Default Rate of 16%.

Last Updated Date: 17 Jun 2022

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Last Updated Date: 17 Jun 2022

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