Thorofare Capital Provides $7.7 Million Loan to Finance Acquisition of Austin-Area Shopping Center

AUSTIN, Texas - April 8, 2015 - PRLog -- Los Angeles-based portfolio lender Thorofare Capital has funded a $7.7 million floating rate commercial mortgage for the acquisition of Pflugerville West Shopping Center, a 67,150-square-foot retail center located in Pflugerville, Texas, 14 miles northeast of Downtown Austin.

The sponsor, a Virginia-based private investor with a long history of value-add retail and multifamily projects throughout Texas, acquired the property in a marketed transaction for $131/SF, representing a going-in cap rate of 9.5%, according to Thorofare’s Executive Vice President of Origination, Felix Gutnikov.

The non-recourse, interest-only financing structure carries an initial term of two years with multiple extension options, and was sized to 75% of stabilized value.  The financing includes an approximately $1.5 million “earn-out” facility.

Thorofare closed the transaction in just three weeks from application to meet the sponsor’s impending 1031 exchange deadline.

         Pflugerville West Shopping Center, which was originally constructed in 1998 and expanded in 2006, is currently shadow-anchored by Cinemark, the third largest motion picture theatre circuit in the country.  The property was 89% occupied by nine tenants at the time of closing. The center is anchored by Ashley Furniture® Homestore, which occupies approximately y 58.0% of the net rentable square footage.

The loan represents Thorofare’s sixth investment in Texas, and was funded out of its recently announced floating rate bridge program.

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.


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.