Thorofare Capital Provides Acquisition Financing for Dayton, OH Office Campus

By: Thorofare Capital
 
DAYTON, Ohio - April 28, 2015 - PRLog -- Los Angeles-based portfolio lender Thorofare Capital has funded a $6.5 million floating rate commercial mortgage for the acquisition of the Apple Valley Office Campus, a 130,440-square-foot, three-building office campus near Wright Patterson Air Force Base in Beavercreek, OH.

The non-recourse financing structure included an initial term of three years with extensions, and was sized to 70% of the total project capitalization. Thorofare included approximately $1.6 million in TI/LC reserves to support potential re-tenanting costs, as well as $100,000 to address immediate CapEx needs.

The sponsor purchased the portfolio in an off-market transaction and intends to restructure and extend the leases with the two largest tenants and then refinance the property with permanent debt.  The sponsor is a partnership between two Southern California-based, privately held investment firms.  The management team has acquired in excess of $4 billion of real estate and real estate-related investments over the past 25 years, including 50,000 units of multi-family, 1.5 million square feet of retail, and 5 million square feet of office and industrial properties throughout the United States.

“To win this financing assignment, Thorofare responded quickly with a structure and pricing which reflects our ability to more aggressively pursue deals that have particular merit,” said Thorofare Senior Vice President Bill Hyatt.  “In this instance, the strongly cash flowing asset was being acquired off-market at an attractive basis by a well-respected sponsorship group.”

The properties are located near the intersection of Research Blvd. and Grange Hall Road in the City of Beavercreek, the largest city in Greene County, Ohio and the second largest suburb of Dayton. The property is comprised of two, single-tenant and one multi-tenant building. Local market occupancy in the East Dayton submarket for comparable Class B office properties is strong, with demand in the submarket being driven heavily by military contracts related to Wright Patterson AFB.

Apple Valley Office Center's anchor tenants include Northrop Grumman Systems Corporation, a multi-billion dollar global defense and technology company, and MacAulay-Brown, a Dayton-based engineering company. The campus, which includes more than 500 parking spaces for tenants and visitors, is easily accessible via Interstates 675, 75 and 70, as well as State Route 35.  The occupancy, at the time of loan closing, ranged from 71% to 100% in each of the three buildings, which translates into a double digit in-place debt yield.

About Thorofare

Los Angeles-based Thorofare Capital, Inc. (“Thorofare”) is a middle market loan origination and servicing company. The firm focuses on $3,000,000 to $30,000,000 transactions, targeting value-add and opportunistic acquisitions, recapitalizations, and distressed debt secured by transitional properties. Our affiliate, Thorofare LLC, is an SEC Registered Investment Adviser focused on alternative fixed income opportunities through US commercial real estate debt investments. We are currently deploying capital through our third high-yield private real estate fund, which has a target deployment capitalization of $250,000,000. For more information, visit www.thorofarecapital.com.

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This communication is for informational purposes only and intended for our non-advisory loan origination and servicing clients only. As such, nothing herein is an offer or solicitation for the purchase or sale of any security, may not be relied upon in connection therewith, and is qualified in its entirety by any related Private Placement Memorandum and Partnership Agreement. An investment in a private real estate fund involves a substantial degree of risk and investors could lose some or all of their investment. SEC registration does not imply any particular level of skill.

Contact
Bruce Beck
***@dbrpr.com
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Source:Thorofare Capital
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Tags:Ohio, Acquisition, Real Estate, Financing, Lender
Industry:Financial, Real Estate
Location:Dayton - Ohio - United States
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