Alpine Income Property Trust Originates $24mln Loan for San Francisco Redevelopment.

Alpine Income Property Trust has originated a $24m first mortgage loan investment with an 11% interest rate and 24-month term. The loan will fund the redevelopment of a former retail building in the East Bay submarket of San Francisco into an industrial asset. The redevelopment is expected to attract technology, life science, manufacturing and logistics users. This transaction aligns with the company's strategic objective of investing in accretive institutional-quality assets and structured investments.

Alpine Income Property Trust (NYSE: PINE) has announced the origination of a $24.0 million first mortgage loan investment, with an interest rate of 11.0% and a term of 24 months. This loan will fund the redevelopment of a former retail building in the East Bay submarket of San Francisco into an industrial asset. The redevelopment is expected to attract technology, life science, manufacturing, and logistics users, aligning with the company's strategic objective of investing in accretive institutional-quality assets and structured investments [1].

The property, spanning 127,380 square feet on 8.7 acres, is expected to be transformed into a high-demand industrial space. The loan, which was fully funded at closing, will enable the sponsor, a well-capitalized real estate opportunity fund, to acquire and rezone the property. Year-to-date in 2025, Alpine Income Property Trust has completed $109.9 million in acquisition and structured investment transactions, achieving a weighted average initial cash yield of 9.5% [1].

The loan structure provides several advantages, including immediate double-digit returns without acquisition costs, reduced operational responsibilities, and downside protection through a first-lien position. Additionally, the loan targets a premium San Francisco submarket poised to attract tenants from sectors with robust demand fundamentals [1].

The investment's 11% yield significantly exceeds Alpine's cost of capital, providing a healthy spread and enhancing overall portfolio returns. By working with an established real estate opportunity fund as sponsor, Alpine also mitigates execution risk while maintaining exposure to the promising industrial sector conversion trend in urban markets [1].

References:
[1] https://www.stocktitan.net/news/PINE/alpine-income-property-trust-announces-24-0-million-first-mortgage-erufkwc7laxa.html