Thorofare Capital has funded a $6,270,050 bridge loan for an 85% complete, 84% pre-leased 33,685 square feet medical office building located in Decatur, Georgia.

The financing was used by the sponsor repay a construction loan (that at a discounted payoff amounted to 75% of the unpaid principal balance), fund approximately $2 million of construction completion costs, fund a payment reserve, which burns off once the tenants take occupancy and start to pay rent, and finish the tenant improvements.

The property construction stalled when the borrower and the prior general contractor got into a dispute over work not yet completed. The construction lender desired an exit when the construction stalled and their loan commitment was only sufficient for the build-out of about 50% of the tenant improvements. At the time of closing, the property was 85% complete and the remaining build-out was planned for completion in three months. Thorofare was able to step in and close this multi-faceted transaction and allow for the borrower to complete construction. The Borrower has kept the building 84% preleased despite the timing set back.

All of the executed leases are NNN with 70% of the 33,685 sf under lease through 2024 and the remaining 14% through 2019. The tenants are all physician practices, including a pharmacy, a primary care facility, a chiropractor, a dermatologist, and a laboratory. There is one vacant medical office suite consisting of 5,411 sq./ft., or 16% of the building. Each lease is personally guaranteed by an individual and not just the physician’s respective practices.