Thorofare Capital has funded a $12,141,000 fixed rate bridge loan for the acquisition of a 340-unit value-add multifamily portfolio in Las Vegas, Nevada.  The portfolio includes Ridgewood Apartments, a 112-unit multifamily community located at 3355 South Arville Street, and Evergreen Apartments, a 228-unit multifamily community located at 5400 West Cheyenne Avenue.  Both of the properties were sold as REO assets, through Auction.com, by Miami-based CMBS special servicer LNR Partners, LLC.  Thorofare funded the loan in just 20 days from application.

Ridgewood Apartments is located approximately one mile from the Las Vegas strip and within walking distance of the Palms Casino.  The 1977-built property consists of 24 1BR/1BA units and 88 2 BR/2BA units throughout seven two-story apartment buildings, one combination leasing office/clubhouse, and two laundry facilities on a 5.75-acre site.  At the time of closing, Ridgewood was 62.5% occupied and had 37 units that were not able to be marketed, due to very limited capital being available to turn units.  Evergreen Apartments is located the North Las Vegas neighborhood. The 1986-built property consists of 129 1BR/1BA units, 32 2BR/1BA units, and 67 2BR/2BA throughout 18 two-story, garden-style apartment buildings and one combination leasing office/clubhouse on a 9.13-acre site.  At the time of closing, Evergreen was 84% occupied and had 31 vacant units that were not able to be marketed, due to very limited capital being available to turn units.

The sponsor plans to commence a $2,250,000 renovation program, which includes interior refurbishment, turning units that were out of rental inventory, upgrading the exterior of the property, and improvements to the property’s common areas.  These capital expenditures are needed to achieve market occupancy and rents as the properties have been capital starved after being taken over through receivership in November 2014, leading to a deterioration of the properties physical condition and perception within the rental market.  The sponsor has retained B&R Property Management to oversee these renovations.  Their business plan is to perform capital expenditures in vacant units and as tenancy rolls over, lease up the property at market rental rates, and maximize value through efficient property management.

Thorofare’s non-recourse acquisition facility allowed for a quick closing given the shortened escrow period, and fully capitalized the total project costs.  The financing structure included an interest reserve, does not require amortization during the full term, and the two properties are not cross collateralized.

The sponsor is an affiliate of California Capital Real Estate Advisors (“CALCAP”).  CALCAP is a Los Angeles-based real estate investment company operating subsidiaries focused on value-add multifamily acquisitions, property management, and real estate lending across California, Nevada, and Arizona.  The firm has acquired in excess of 2,200 apartment units since 2011.  The property manager, B&R Property Management, currently supervises more than 5,000 units across 26 properties, all in the Las Vegas area.