Independent Bank credit problem could weigh on Q3 results, says Piper Sandler

Piper Sandler notes that Independent Bank has a $59M loan on a 273,000 square foot office park in Waltham, Massachusetts that “appears to be having trouble.” The owners of the property, Jumbo Capital Management and Sound Mark Partners, who had purchased the property for $80.1M in 2017 with the goal of converting existing office space into lab space, are marketing the property for sale and bids could be in the $35M range, notes the analyst, who adds that the owners are apparently cooperating with Independent on the sale. Piper has a Neutral rating and $61 price target on Independent shares.