Thorofare Capital has funded $5,900,000 in acquisition financing for a lender-owned, 148,854 square foot industrial facility located on San Antonio Street in Hayward, California. The transaction closed in just one week from application. The loan opportunity represented a low loan basis of approximately $40 per square foot, well below the sales comps within the sub-market, which is very supply constrained.

The property is a well-maintained 1977-vintage, 148,854 square foot concrete tilt-up building with 5,000 feet of office space and 24 foot clear height in the warehouse. The original 100,000+/- square foot building was expanded in 2004/05 by 50,000+/- feet. The current tenant, International Windows, is the original owner. The property has served as International Windows’ Northern California manufacturing and distribution hub since the building’s completion.

The all-in cost of acquisition and stabilization is $7,610,000, which includes the $7,000,000 acquisition price of the property and a $310,000 tenant improvement/leasing commission reserve. The original tenant, International Windows, occupied the property at the time of closing. International Windows is moving out of the area and vacating the building in January 2014. The property was previously encumbered by a $39,000,000 loan which was cross collateralized by six other International Windows facilities. Due in party by the financial crisis, International Windows entered into Chapter 11 bankruptcy and was forced to hand over the title of the property to the lender. The business plan will be to entice a quality tenant to lease the building by offering an option to purchase at a market rate.