A subsidiary of KBS Strategic Opportunity REIT II, Inc. has originated a first mortgage loan on 655 Summer Street, a three-story office building in Boston, Massachusetts.
The borrower is 655 Summer Holdings LLC. The loan is for $3.5 million.
The Building comprises 14,392 rentable square feet and was built in 1989. The Company funded the 655 Summer Street Mortgage Loan with proceeds from its now terminated private offering.
The 655 Summer Street Mortgage Loan matures on October 1, 2017 and bears interest at a fixed rate of 9.25% per annum for the term of the loan. The borrower paid a loan origination fee equal to 8% of the loan amount.
Monthly payments are interest only for the first 35 months of the term of the loan, followed by payments of principal and interest, with principal calculated using an amortization schedule of 30 years and with the remaining principal balance, all accrued and unpaid interest and all other charges due at maturity.
The borrower may prepay the loan in whole (but not in part) beginning July 1, 2017, subject to certain conditions.