Two Woodfield Crossing Office Building

Two Woodfield Crossing was a full-recourse acquisition loan financed by a local credit union who was very familiar with this suburban office submarket located northeast of downtown Indianapolis.  Loan terms: 70% LTV, 7.20% fixed rate, 5 yr term, 25 yr amortization, 54321 early prepayment penalty.

The property was sold via an online auction offered by Ten-X (an affiliate of CoStar) on behalf of a motivated institutional seller.  The challenge in this transaction was the extremely low occupancy, which was 49% at the time of closing. The other challenges included just finding a lender who was willing to finance this office building considering the alarming rise in loan maturity defaults on office loans, a national decline in the average office occupancy and of the course the stubbornly waning demand for office space due to the post pandemic trend in the resistance to return to the office (working remotely).

Two Woodfield Crossing is a 120,000 SF, 5-story Class A office building built in 1987 and is one of four class A office buildings located in a suburban office park called Woodfield at the Crossing.  Woodfield at the Crossing is located in the Keystone Crossing Office Submarket (the “Submarket”). Home to 133 office buildings totaling 5.8M square feet, Keystone Crossing is one of the Indianapolis area’s largest office submarkets. The Submarket is located 10 miles north of downtown and is bisected by I-465 allowing for regional access to and from the Submarket.

Midway Plaza

4.0% fixed rate for 5 years then resets at market for another 5 years with a balloon payment after 10 years; no prepayment penalty and no monthly escrows.