KREF Closes Two Loans Totaling $265M for Seattle Properties
KKR Real Estate Finance Trust (KREF) has closed two floating-rate senior loans totaling $265 million for two properties in Seattle, Wash., Commercial Observer can first report.
“In the first nine months of 2018, we have originated $1.8 billion of loans, bringing our total originations for the last twelve months ended September 30, 2018 to $2.2 billion of senior loans—a 76 percent increase over the corresponding period in 2017,” KREF Co-CEO Chris Lee said in prepared remarks.
KREF provided a $172 million refinance for Home Plate Center, two Class-A office buildings totaling 343,000 square feet at 1501 1st Avenue South and 1521 1st Avenue South in Seattle’s Stadium District, sources told CO. Officials at KKR declined to comment on or confirm the property addresses.
The seven-story property, developed by American Life, sits close to Seattle’s waterfront and two of its professional sports stadiums; Safeco Field (home to the Seattle Mariners) and CenturyLink Field (home to the Seattle Sounders).
KREF’s two-year loan has three one-year extension options, carries a coupon of LIBOR plus 3.7 percent and has a loan-to-value (LTV) of 65 percent.
The lender also provided a two-year $93 million refinance to Security Properties for Panorama Apartments, an 18-story, 95 percent occupied class-A multifamily property at 1100 University Street in Seattle’s First Hill neighborhood, sources said. The loan has a coupon of LIBOR plus 2.6 percent and a LTV of 80 percent.
The 179-unit high-rise apartment building has views of the city and underwent an extensive renovation in 2015, according to Security Properties’ website. Amenities include a clubroom, a 50-foot outdoor pool, a barbeque area, a fitness center and bike storage.
“The third quarter was the second most active origination quarter in KREF’s history, with four new loan originations totaling $681 million,” KREF Co-CEO Matt Salem said. “In addition, we received $281 million of repayments during the quarter. This includes a $125 million repayment of a senior loan secured by a retail property in Brooklyn and a $17 million repayment of a mezzanine loan secured by a retail property in Chicago, reducing the retail exposure in the portfolio to 4 percent as of quarter end.”
Officials at American Life and Security Properties could not immediately be reached for comment.