Thorofare Capital has funded $2,065,000 in note acquisition financing for Cedar Street Capital Partners LLC to acquire a note secured by a mixed-use office/retail property located at 5527-5443 N Broadway in Chicago IL. The sponsor plans on subsequently investing $550,000 in tenant improvements and leasing commissions upon securing fee simple ownership.

The non-recourse financing, provided by Thorofare, carries an initial term of 12 months with only six months of yield maintenance and is sized to a 10% debt yield on stabilized NOI or 60% of stabilized value. In addition to the CapEx, tenant improvement and leasing commission holdbacks, Thorofare also funded an interest reserve to cover debt service until the building is stabilized.

The property is located in the Edgewater neighborhood of Chicago, Illinois and it is benefited by favorable zoning (B1-3) which allows for up to 60 apartment units as of right. The property is located within a Transit Oriented District (TOD), defined as the 600 foot radius of an EL station (in this instance, the Bryn Mawr Red Line Station). The TOD designation allows for a 50% reduction in required parking. The property is located one half block from the CTA Bryn Mawr Red Line Station and two blocks from Lake Shore Drive. This area is located approximately seven miles north of the City Chicago’s Central Business District (CBD).

5533-43 N Broadway is a mixed-use property that can be used as either office or retail on the ground floor and also contains two second floor apartment units averaging 744 square feet each. The sponsor’s strategy is to lease the vacant ground floor suites and roll the leased units to a market rate. The tenant roster includes offices occupied by political leaders throughout the state and county, a health services center, a communications company and two residential multifamily units totaling 1,488 square feet. Approximately 57% of the rentable space is currently vacant, which presents upside potential through lease up.

The sponsor is a privately held, Chicago-based real estate investment, development and management company that is principally focused on re-development of Chicagoland commercial real estate and acquisitions of under-performing and/or distressed assets. The sponsor has deployed in excess of $250 million towards the development of commercial real estate within the Chicagoland area.

Thorofare placed this loan in its Thorofare Asset Based Lending Fund III, L.P., a $250 million discretionary debt fund.