Thorofare Capital has funded $2,215,758 in distressed debt acquisition financing for the purchase of a 5-mortgage delinquent loan portfolio totaling $2,215,758 in unpaid principal balance. Four of the mortgages are senior loans and one is a subordinate loan that is secured by one of the four properties in the portfolio. The repeat client, who has previously closed more than $25 million in transactions with Thorofare, required a fast-paced lender to finance this off market acquisition in less than 10 days from application.

The first underlying property, located on South Campbell Avenue, is a 17-unit, 11,574 square foot apartment building. At the time of closing, the property was 90% occupied.

The second underlying property, located on South Bennett Avenue, is a 28-unit, 33,726 square foot apartment building. At the time of closing, the property was 96.4% occupied.

The third underlying property, located on South Ada Street, is a 13-unit, 12,021 square foot apartment building. At the time of closing, the property was 100% occupied.

The fourth underlying property, located on South Campbell Avenue, is a 17-unit, 11,574 square foot apartment building. At the time of closing.

The sponsor purchased the defaulted mortgages from a major European bank. Concurrently with the acquisition of the five mortgages, Thorofare’s sponsor entered into a forbearance agreement with the underlying borrower, where the underlying borrower will be required to pay off the mortgage loans at a set amount by the end of the term of the forbearance agreement. The average comparable sales price per unit across the entire portfolio is well above Thorofare’s basis.

Thorofare’s note financing program allowed the sponsor to close in a very short time frame for this off market transaction and earn equity returns while in a secured debt position.