Thorofare Capital has provided a $2,300,000 senior secured loan to capitalize a discounted payoff opportunity and complete the tenant improvements for Cypress Preserve Professional Park, located at Royal Gulf Circle in Fort Myers, Florida.

The project was developed as office condos, and one and one-half buildings totaling 4,500 square feet were sold in 2007, leaving a total of 45,500 square feet remaining. The project was originally capitalized with more than $5,000,000 of debt and equity, including a $3,000,000 construction loan from a regional bank in Florida, which later failed. The equity infusion and development loan proceeds went to fund the land acquisition and vertical construction of the property.

The property, which was fully developed and completed in 2006, consists of 13 independent Class B office condo buildings. The interior configuration allows for flexibility towards tenant improvement packages and configuration. The fully developed property consists of 223 parking spaces, or 4.46 spaces per 1,000 square feet of improved space. This ample parking ratio supports medical uses.

The borrower was able to negotiate a discounted payoff with a regional bank that took over the original lender’s assets after its failure and FDIC receivership. The DPO equates to a 48.8% discount on the unpaid principal balance of the loan. The borrower had several pending leases, which were executed at closing to increase occupancy and cash flow at the property. Thorofare’s financing included a TI/LC facility as well as a payment reserve and a favorable release price structure. The transaction closed in three weeks from application.