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Thorofare Capital Wraps Up Successful Year With Multiple Closings Across Programs and Property Types
Multi-Strategy Platform Offers Flexible Debt Capital Nationwide
By: Thorofare Capital
The loans were financed through Thorofare's family of funds and separate accounts including the Thorofare Asset Based Lending Fund IV, L.P., which is now fully invested and closed to new investors. Thorofare funded 45 loans across 18 states totaling $378.5 million out of Fund IV, exceeding its initial targeted equity deployment of $300 million. Management successfully reinvested capital from loan payoffs that occurred during the Fund's reinvestment period to exceed its target. Since its founding in 2010, Thorofare has originated more than $1.3 billion.
Thorofare's recent success in winning deals evidences the continued strong demand for transitional commercial real estate debt and the need for non-bank lenders. Although real estate fundamentals remain strong, many commercial banks have cut back on lending and/or are focusing more on stable assets due to the increased post-financial crisis regulatory burdens and higher capital charges for construction and redevelopment loans.
"Commercial real estate sponsors, developers and advisory firms rely on Thorofare for consistent delivery of flexible and structured senior capital even as the private and non-bank lending marketplace becomes crowded with new entrants," said Felix Gutnikov, Principal and Executive Vice President of Originations at Thorofare."
The most recent batch of loans includes short-term bridge loans and medium-term whole loans. Geographically they range from the West Coast (California and Washington), the Midwest (Chicago) and Northeast (Connecticut)
In some cases, being able to close quickly was a deciding factor, such as a $7.2 million short-term bridge loan on a shopping center with Hobby Lobby and Harbor Freight stores in Puyallup, WA. The asset was sold via RealSight Marketplace, an online auction platform, on behalf of CMBS special servicer CWCapital Asset Management. The loan, which closed in mid-November, was brokered by NKF Capital.
Another loan, involving an $8.1 million refinancing and tenant improvement loan on an office building on 2722 Colby Avenue in Everett, WA, needed to close very quickly after it fell out of loan application with a global investment bank that planned on contributing it to a CMBS pool. After the loan was rejected by the B-piece investor (the buyer of the pool's junior classes) due to the lease rollover profile of the tenants, Thorofare was able to structure a short-term bridge loan with a combination of cash sweeps and larger holdbacks for leasing costs. The loan was brokered by JLL.
Other loans closed at year-end 2017 include:
•An $18.8 million medium-term whole loan on the New Cambridge Apartments in Bristol, CT. The transaction, which financed the property's acquisition and redevelopment closed in December.
•An $18.6 million medium-term whole loan that financed the acquisition and redevelopment of the Lakes Apartments in Concord, CA. The loan closed in mid-December.
•A $12.2 million short-term bridge loan on the Atwood Apartments in Seattle. The transaction financed the acquisition and redevelopment of the property and closed in December.
•An $8.0 million short-term bridge loan on the shopping center at 550 Shatto Place in Los Angeles. The loan financed the property's acquisition and closed in December.
•A $5.9 million short-term bridge loan on Pioneer Square Parking Garage in Seattle. The refinancing closed in November.
•A $4.5 million short-term bridge loan on the retail property at 942 North Broadway in Los Angeles. The loan, which closed in December, is located in the city's Chinatown section.
•A $4.3 million short-term bridge loan on the industrial lofts at 1907 N. Mendell Street in Chicago. The loan closed in November.
About Thorofare Capital
Thorofare Capital (http://www.thorofarecapital.com) is a vertically integrated alternative investment manager that specializes in providing senior mortgage debt solutions to borrowers seeking to opportunistically purchase or recapitalize middle market commercial real estate assets throughout the United States. Through Thorofare Capital's two lending programs, Short-term Bridge Loans and Medium-term Whole Loans, it primarily originates secured first mortgage positions ranging from $5 million to $100 million on commercial cash-flowing assets at lower loan to values. Thorofare Capital has originated $1.38 billion of loans since its inception in 2010. Its private fund series is managed by its affiliate, Thorofare, LLC ("Thorofare")
This communication is for informational purposes only and intended for PRESS distribution only and may not be distributed publicly. As such, nothing herein is an offer or solicitation for the purchase or sale of any security and is qualified in its entirety by any related Private Placement Memorandum and Partnership Agreement. Deal terms subject to change at our discretion. Total loans funded figures represent closed financing transactions across closed-end funds, programmatic joint venture arrangements, co-investments and separate accounts. An investment in a private real estate fund or loans involves a substantial degree of risk and investors could lose principal. Prospective investors can obtain more information about our private funds by contacting the investor relations department at Thorofare Capital.
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