Thorofare Capital has funded $3,278,000 in non-recourse senior financing for a sponsor who purchased a $4,300,000 face value first trust deed note secured by office building located in Greensboro, North Carolina. The property is a suburban four story, 59,840 square foot, Class B+ office building with 372 surface parking spaces on 5 acres. It is of institutional quality and is occupied by credit rated tenants including EcoLab and Nextel. Additional structuring of the bridge loan includes an interest reserve and a future “earn-out” facility to capitalize tenant improvements and leasing commissions.

Affiliates of the sponsor were the prior owners of the property and contributed fresh equity capital as part of the note purchase. The former lender sold the matured note at a 17% discount to the principal balance because the property was 44% occupied after a large tenant recently vacated and the property no longer qualified for permanent refinancing.

By purchasing the note with financing from Thorofare, the sponsor created time to re-tenant the building and can minimize tax impacts from any forgiveness of debt by keeping the original note outstanding. The property is among the nicest in the submarket and provides excellent freeway visibility as well as signage possibility for new tenants. Thorofare’s financing allowed the sponsor to capture an opportunity to reduce its costs basis and work to stabilize the asset.