Morrisville, NC $57,250,000 ~243,000 Sq. Ft. Office Acquisition & Adaptive reuse

Knighthead provided a $34mm first mortgage acquisition and adaptive re-use construction loan for the conversion of a former outlet mall to a Class A ~243,950 Sq. Ft. office space. The loan was underwritten at ~64% of cost and ~48% of as-stabilized value.  Knighthead further modified its existing $34 million construction loan, which was originated in 2019,  and upsized the loan to $57.25mm to provide additional capital to the borrower for tenant improvements and leasing commissions in connection with a long-term lease for the entire project.   The tenant, Invitae Corp.,  is a biotech company involved with DNA sequencing.