Thorofare Capital has funded a $7.176 million fixed-rate bridge loan for the refinancing of Applecreek Estates, a 248-unit multifamily property located on Pheasant Run Road in Norman, Oklahoma. The loan will refinance an existing CMBS loan that had matured and transferred to special servicing. The sponsor plans to cure deferred maintenance caused by storm damage, replace the exterior siding, repave the parking lot, and engage in a marketing/leasing strategy to increase occupancy above 85% and obtain permanent financing. The sponsor approached Thorofare through a mortgage banker after the deal fell out of application with a specialty finance company.

The property is located five miles northwest of the University of Oklahoma. It consists of 248 one and two bedroom units in a garden style layout of thirteen buildings. Applecreek Estates offers five floor plans, of which 112 (45.2%) are two bedroom varieties and 136 (54.8%) are one bedroom varieties. One bedroom units are either 500 or 650 sq./ft. and two bedroom unit are either 750 or 900 sq./ft. At closing, Applecreek Estates was 65% occupied. The property has had historically strong occupancy of 90%+ that suggests significant upside via correcting deferred maintenance and leasing up currently vacant units.

Thorofare’s loan structure included a $950,000 CapEx Reserve and an interest reserve due to the sub-1.0x DSCR at closing. The interest-only financing was sized to 65% LTV. The fixed rate loan carries an initial term of 9 months and includes three extension options.

The sponsor is a Los Angeles-based, privately held investor that specializes in direct ownership and management of multifamily housing and office properties throughout the United States. The sponsor currently manages in excess of 1,500 residential units, as well as two institutional-quality office properties, throughout Texas and Oklahoma.