Thorofare Capital has funded a $13,500,000 bridge loan for the refinancing of Forum Center, a multi-tenant anchored retail shopping center located in the Hurstbourne Parkway corridor of Louisville, Kentucky. The non-recourse financing, provided by Thorofare, carries an initial term of one and a half years while the interest rate is pegged at LIBOR plus 680 basis points. The attractively structured debt deal allows a major repatriation of equity to the equity investors in the partnership and additional “good news” money for tenant improvements and leasing commissions upon additional leasing.

The sponsor acquired Forum in late 2012, during a time that the property suffered from mismanagement that caused high vacancy, and subsequently led an extensive renovation, rebranding and leasing effort at the nearly 140,000-square-foot center. In less than 15 months, the sponsor substantially improved the property occupancy from 50% to 80% causing the net operating revenue to double. This loan recognizes the borrower’s success in repositioning and stabilizing the asset, yet gross loan proceeds were capped to 70% LTV based on the appraisal.

Lucky’s Farmers Market, a Boulder, CO, based company with stores in Gainesville, FL, Columbia, MO, Ellisville, MO, Billings, MT, Louisville, KY, Longmont, CO, and Columbus, OH, as well as its original store in Boulder, CO comprises just over 25% of the center’s tenants. Lucky’s has been a tenant since May 2014. The chain, which currently is expanding in the Midwest, specializes in natural and organic foods, locally grown produce, groceries and fresh meat and seafood. Talbots, an American specialty retailer and direct marketer of women’s classic clothing, shoes and fashion accessories, with nearly 500 stores throughout the US and Canada, occupies approximately 15% of the rent roll. Talbots has been a tenant since 2011. Paul Mitchell, a salon affiliated with John Paul Mitchell Systems (known for Paul Mitchell hair care products and beauty schools in multiple locations) comprises 16% of the rent roll. Paul Mitchell has been a tenant for approximately five years. Additional notable tenants include Jos. A. Bank Clothiers, Contemporary Galleries, and upscale French restaurant Brasserie Provence, which recently opened in space formerly occupied by a Tony Roma’s casual-dining restaurant.

The sponsor is a Scottsdale, Arizona-based a real estate investment, development and management company that exclusively focused on high quality retail and industrial assets in North America. Its portfolio includes neighborhood and community centers, power/lifestyle centers, and warehouse/distribution facilities. Since 2003, the sponsor and its executive team have closed on hundreds of properties in excess of $1 billion.