Alpine Income Property Announces $24M First Mortgage Investment

Alpine Income Property Trust, Inc. entered an agreement to provide a $24 million first mortgage secured by 41 retail properties located throughout the U.S.

The three-year loan was fully funded at closing and is interest-only through maturity, which includes an origination fee and an initial fixed interest rate of 8.75% for the first year, before increasing to 9% in the second year and 9.25% in the final year.

The company also anticipates entering into a revenue-sharing agreement with a subsidiary of CTO Realty Growth, Inc. Alpine’s revenue from the agreement is forecast to be approximately $16,000 per month and will be reduced as single tenant properties within the portfolio are sold.

“As we seek out longer duration core investment opportunities with more compelling yields than what is currently available in the market today, we’re excited about the opportunity to invest in this low leverage, shorter duration first mortgage loan that provides what we believe is an outsized current yield and attractive fee stream,” said John P. Albright, president, CEO of Alpine Income Property Trust, Inc.

The company also announced it has entered into a first mortgage construction loan agreement to provide $6.8 million towards the development of a 5-acre land development project anchored by Wawa and McDonalds in a submarket of Nashville, TN. The two-year first mortgage is interest-only through maturity, includes an origination fee, and an initial fixed interest rate of 11%.