KKR Real Estate Finance Trust Inc., a real estate investment trust that primarily originates or acquires senior loans collateralized by institutional-quality commercial real estate assets that are owned and operated by experienced and well capitalized sponsors and located in liquid markets with strong underlying fundamentals, has recently closed two floating-rate senior loan transactions totaling $224 million. Year-to-date, KREF has originated ten senior loans totaling approximately $1.2 billion.
KREF closed a $119 million floating-rate senior loan ($95.3 million of which was funded at closing) for the acquisition of a five-building, 824,000-square-foot, class B+ office complex, located in the Buckhead submarket of Atlanta, GA. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+3.00% and has an appraised loan-to-value of approximately 66%.
KREF closed a $105 million floating-rate senior loan ($100.0 million of which was funded at closing) secured by a newly developed 269-unit class A multifamily rental building in Honolulu, Hawaii. The loan is being used to refinance the existing construction loan on the property. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+3.95% and has an LTV of approximately 66%.
The weighted average underwritten internal rate of return of the two loans is 11.7%.
Chris Lee and Matt Salem, Co-Chief Executive Officers of KREF, says, “We have been active since our IPO in May 2017, originating six new loans with total commitments of $690 million. During the first eight months of 2017, we have originated ten senior floating-rate loans, representing approximately $1.2 billion of commitments. We are pleased with our deployment to date, which demonstrates the value of our franchise, and we expect to build on the momentum we’ve generated throughout the remainder of 2017.”