Investment Management

Commercial Mortgage Loans

Summary

Originate whole loan commercial first mortgages on stabilized, multi-tenant properties across U.S. major markets and property sectors

Philosophy

We believe packaging high quality real estate credits into a portfolio diversified across borrowers, tenants, geographic location and property type will deliver attractive long-term, risk-adjusted returns versus corporate credits of a comparable quality.

Objective

To generate superior risk-adjusted returns with a focus on current income and capital preservation

Process

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.

Capabilities

Voya Investment Management Real Estate Finance provides financing for income-producing real estate properties including certain special purpose property types:

Property Types

Office, retail, multi-family, industrial, manufactured housing, self storage, hospitality and student housing

Loan Types

  • 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

Structure:

  • 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

Loan Size

Voya Core: $6 million to $88 million/$200+ million portfolio

History

Voya Investment Management Real Estate Finance manages $9.4 billion in commercial mortgage and unsecured loan assets as of December 31, 2013

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