Thorofare deploys $54m from Fund IV

The firm has been deploying capital from its fourth fund, which is targeting $450m, toward residential properties in major US cities.  

Thorofare Capital has originated $54 million in short-term, fixed-rate bridge loans out of its recently launched Thorofare Asset Based Lending Fund IV, PDI sister title Real Estate Capital can reveal.

The largest of the deals out of the closed-end debt fund, which is currently targeting a deployment capitalization of $450 million, is a $14 million loan that refinances Boston Creek Apartments, a 349-unit Class B property near Texas Tech University in Lubbock, Texas. The renovated property required interim financing as the owner aims to stabilize occupancy and sell the asset within the next year.

The second largest financing is a $10.8 million loan to refinance Cypress Gardens Apartments, a 278-unit Class B multifamily community in Winter Haven, Florida, which was stacked with an additional $852,500 CapEx reserve to renovate 50 units that were not part of a recent $3 million renovation.

The other deals include a $7.5 million loan to refinance a 56-room Quality Inn in Brooklyn, New York, used to retire the construction debt and repatriate equity; and a $7.4 million loan for the refinancing and re-development of a 23,975 square foot building in Los Angeles’ Chinatown, which will be used to convert the 100-year-old building into creative office space with 10,000 square feet of ground floor retail.

Thorofare’s previous fund, Fund III, is fully committed, having originated 48 loans totaling $288 million. Since its inception in 2010 with $30 million in lending capacity, Thorofare Capital has originated more than $600 million in fixed-rate bridge loans secured by multifamily, retail, industrial, hospitality, office and certain specialty asset classes.

In 2015, the Los Angeles-based loan origination and servicing company also originated more than $100 million in floating rate debt for office, retail, hotel, and multifamily properties across eight states through a strategic partnership with DoubleLine Capital.