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Commercial Mortgage Loans
SummaryOriginate whole loan commercial first mortgages on stabilized, multi-tenant properties across U.S. major markets and property sectors.
PhilosophyWe believe high quality investments and diversification across borrower, key tenants, geographic location and property type provide stable and consistent returns over their stated term at a higher yield than fixed income alternative investments on a capital adjusted basis.
ObjectiveTo generate superior risk-adjusted returns with a focus on current income and capital preservation.
Loans are originated in accordance with accepted guidelines through Voya’s large correspondent network and direct lending relationships. Underwriting and site inspections are performed by senior staff. Committee approval is predicated on a detailed analysis and investment recommendation based on site visits, financial reviews, rent rolls, quality ratings and third party reports. The real estate assets are managed through submission and review of periodic reports including operating statements, property inspections and rent rolls. Loan accounting, payoffs and releases, letters of credit, critical loan events, cash reserves, and so on are administered by internal staff. Ongoing risk management involves quality rating of all loans using a proprietary Quality Rating System. Detailed underwriting review and rating of loans are conducted on a regular basis. Watch list items are pro-actively managed. Portfolio reports are prepared for clients and senior management. Sub-performing, delinquent loans, and/or foreclosures are managed by the Problem Loan Team consisting of Risk Management, Production and Support staff.
Voya Investment Management Real Estate Finance provides financing for income-producing real estate properties including certain special purpose property types:
Office, retail, multi-family, industrial, manufactured housing, self storage, hospitality and student housing
- 3 – 20 Year Term Fixed Rate Financing
- Senior Notes in either an A Note / B Note Structure or in Senior Loan in front of Mezz Debt
- Purchase Loan Program – performing notes from other institutions (borrower/geographic concentration might be able to make more money than refinancing loan for the Borrower)
- Club Lending – participate with an Voya or Non-Voya partner
- Construction to Perm
- Add On B Notes to Existing Loans
- Value Add Mortgage Participations
- Prepay Flexibility
- Forward Pricing
- Structure, prepay on existing deals into rate
- Multiple tranche (5-7-10 year)
- Release Prices
- Substitution Rights
- Floating rate component on portfolio transaction to allow prepayment flexibility
Voya Core: $6 million to $88 million/$200+ million portfolio
Voya Investment Management Real Estate Finance manages $9.4 billion in commercial mortgage and unsecured loan assets as of December 31, 2013