Thorofare Capital has funded a $7,795,200 non-recourse, fixed rate bridge loan for the acquisition of the Beverly Grove Retail, a 12,500 square foot high street retail property located at on Beverly Boulevard in Los Angeles, California. The loan will finance the acquisition of the Property prior to redevelopment. Thorofare was able to create a highly structured, “stretch” senior financing and underwrote the re-development plan rapidly in order to close the loan in less than 30 days from application. Thorofare is not funding redevelopment costs – the purpose of the Thorofare loan is to provide acquisition capital and time to prelease the property. The sponsor purchased the asset in an off-market transaction from a private seller. The Borrower plans to perform a full repositioning of the Property to attract high-rent retail and restaurant tenants. During the life of the Thorofare loan, the Borrower will engage in permitting and preleasing efforts before arranging financing to take-out Thorofare and fund the renovation budget.

The non-recourse, interest-only financing was sized to 80% of total project capitalization. The $7,795,200 loan was bifurcated into an A Note and B Note, with the A note representing 68% LTV and the combined financing totaling 80% LTV. Thorofare participated with a New York-based private investment firm that purchased the B Note concurrently at closing. The property is located in a prime retail location adjacent to The Grove mall on Beverly Blvd, near the primary intersection of 3rd St and Fairfax Ave. Beverly Grove Retail is situated south of West Hollywood, east of Beverly Hills and north of the Mid-City Wilshire Corridor. Vacant space is highly visible corner store on Beverly & Edinburgh with potential to be demised into smaller spaces that will attract higher rent.

The sponsor group includes a partnership between two Denver-based, privately held investment firms. The management team of the sponsor was responsible for all retail activities, on behalf of one of the largest real estate development companies in the country, from 1994 through 2001. During this time, the Principals of the sponsor led over $350 million of investments and were involved in overseeing $1 billion of investment transactions. Since November of 2002, the Principals of the sponsor have acquired, repositioned, and redeveloped retail properties throughout California valued at over $400 million.