Thorofare Capital has funded a $7,700,000 floating rate commercial mortgage for the acquisition of Pflugerville West Shopping Center, a 67,150 SF retail center located at 15424 FM 1825 in Pflugerville (Austin) Texas. The sponsor acquired the property in a marketed transaction for $131/SF, representing a going-in cap rate of 9.5%. Thorofare also provided a TI/LC “earn-out” facility of $1,375,000, as well as $125,000 reserved for capital expenditures. Thorofare closed the transaction in just three weeks from application to meet the sponsor’s impending 1031 exchange deadline.

Pflugerville West Shopping Center was originally constructed in 1998, expanded in 2006, and is currently shadow-anchored by Cinemark Tinseltown, the third largest motion picture theatre circuit in the country. The property was 89% occupied by nine tenants at the time of closing, with all NNN leases. The anchor tenant of the property, Ashley Furniture® Homestore, occupies just under 39,000 SF or approximately 58.0% of the net rentable square footage. Ashley stores are located in 44 States in the U.S. with over 400 locations. Ashley stores are also located in Canada, Mexico, Central America, and Japan, and are continuing to expand domestically and abroad. The sponsor’s capital improvement plan includes upgrading the pylon signage, painting and landscaping, and sealcoating and stripping the parking lot.

The sponsor is a Virginia-based private investor with a long history of value-add retail and multifamily projects throughout Texas. The sponsor has contracted Austin-based CSA Realty Group for all property management-related activity and leasing efforts.

The non-recourse, interest-only financing structure includes a competitively-priced spread over the 30-day LIBOR, carries an initial term of two years with multiple extension options, and was sized to 75% of stabilized value. Thorofare capitalizes its transactions through a series of private closed-end debt funds and managed accounts on behalf of high-net-worth and institutional investors.