LIGHTNING RELEASES: LOS ANGELES, CA & VALLEJO, CA (1/14/2014) – Thorofare Capital has announced that it has recently funded a $2.5 million acquisition loan for a 42,500 sq./ft. drug store anchored retail property in Vallejo, California. The borrower acquired the property through an auction process. Thorofare provided a 65% advance rate and closed the transaction in just two weeks from application.
Brendan Miller, Thorofare’s CIO, comments, “We were attracted by the double digit debt yield from existing property cash flow and by the low basis per square foot for a drug anchored center within an infill submarket. Additionally, we were pleased to partner with a local borrower who is not only making a significant equity investment, but is an experienced manager of other retail properties in the Bay Area.”
The property is currently at 65% occupancy but has no exposure to lease expirations during the next two years. The borrower plans to make cosmetic renovations to the property and then execute new leases with additional tenants. The largest available space is a stand-alone 5,500 sq./ft. building adjacent to Springs Road that was formerly occupied by Hollywood Video.
The loan was structured with funds available for tenant improvements and leasing commissions to help attract new tenants to the center. The loan structure also assures that capital will be available to fund renovations at the center which will improve the experience of both tenants and shoppers at the center.
William Hyatt, Thorofare VP, adds, “Closing within two weeks into the teeth of the holiday is demonstrative of our execution capabilities when borrowers need capital within a tight time frame.”
About Thorofare Capital: Los Angeles-based Thorofare Capital, Inc. is a direct portfolio lender specializing in short term commercial real estate loans. Thorofare is currently deploying capital from Thorofare Asset Based Lending Fund III, L.P., its third discretionary real estate debt fund, targeting investments between $2 million to $25 million across all property types throughout the United States. With a national footprint, Thorofare has invested in excess of $265 million since 2010 in more than 70 transactions across 14 states, representing an aggregate asset value approaching $500 million.
For more information, please contact:
William Hyatt | email@example.com | (213) 873-4016