LADERA RANCH, CA--(Marketwired - Jun 29, 2015) - Money360, Inc. (money360.com), the leading online peer-to-peer (P2P) commercial real estate lending platform, today announced that it has closed a $6.75 million commercial real estate loan in Chicago, which was funded by an institutional investor.
The two-year loan was made to an investment firm that focuses on operating data centers and IT services. The firm has managed 11 companies with over $700 million in combined enterprise value and has offices in the United States and Brazil.
The loan was used to purchase a 209,557 square foot, class-A suburban office building in Chicago from a multi-billion dollar NYSE-traded energy company. Additional loan proceeds will be used to finance capital improvements and working capital in the coming months as the building is leased up.
The loan-to-value value was 57.7 percent. An unencumbered townhome located in Manhattan, NY valued at $2.95 million was also secured as additional collateral at closing. Plus, simultaneously with closing, a data management services group executed a 10-year lease for two stories of the building, which will support debt service by over two times following a rent abatement.
"More and more institutional investors are investing via online marketplace lending platforms, such as Money360," said Evan Gentry, CEO of Money360. "I'm not surprised because online marketplace platforms such as ours provide investors with higher risk-adjusted returns than traditional investment vehicles. Within marketplace lending, the real estate sector is seeing rapid growth driven by the security inherently provided with collateral-based lending."
"Although Money360 offers a variety of investing opportunities for both accredited private and institutional investors, this loan is a good example of some of the investing opportunities that our company has to offer institutional investors," said Dan Vetter, President and Co-founder of Money360.
Money360 (money360.com) is the first peer-to-peer (P2P) lending platform for real estate loans, matching worthy commercial real estate borrowers with institutional and accredited private investors. Lending opportunities are only available to accredited investors. Money360 originates, underwrites, coordinates and services all the loans. Borrowers and investors can apply at www.money360.com.